Indian benchmark indices experienced a highly volatile week, with marginal gains recorded amidst mixed data and global concerns. The BSE Sensex rose by 0.43 percent, or 287.11 points, to close at 66,282.74, while the Nifty50 increased by 97.5 points, or 0.49 percent, to finish at 19,751. The BSE Mid-cap, Small-cap, and Large-cap indices also saw gains of 0.7 percent, 0.8 percent, and 0.5 percent, respectively.
Despite global concerns such as higher global interest rates, geopolitical unrest in the Middle East, and stress in the Chinese real estate sector, domestic equity markets remained in positive territory. The BSE Realty, Metals, and Energy sectors posted healthy gains, while the IT sector saw a decline due to weak Q2FY24 results and a weak outlook on discretionary spending.
In terms of macroeconomic data, India’s September Consumer Price Index (CPI) inflation fell to 5 percent from 6.8 percent in August, and the Index of Industrial Production (IIP) for August rose to 10.3 percent from a revised print of 6 percent in July 2023. Market participants can expect sector-specific action depending on Q2FY24 financial performance and management commentary over the next few weeks.
In terms of sector performance, the Nifty Realty, Auto, FMCG, and Media indices recorded gains, while the PSU Bank and Information Technology indices saw declines. Foreign institutional investors (FIIs) continued to sell equities, while domestic institutional investors (DIIs) purchased equities during the week.
Looking ahead, analysts have varying views on the direction of the Nifty50. Rupak De, Senior Technical Analyst at LKP Securities, believes that as long as the index remains above 19,600, the strength may continue. Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, suggests that the index may consolidate in the range of 19,500 to 20,100 in the short term.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.
– Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
– Vinod Nair, Head of Research, Geojit Financial Services
– BSE Sensex: The BSE Sensex is a stock market index consisting of the 30 largest and most actively traded stocks on the Bombay Stock Exchange.
– Nifty50: The Nifty50 is an index of the National Stock Exchange of India (NSE) and represents the performance of the top 50 companies listed on the NSE.
– BSE Mid-cap: The BSE Mid-cap index represents the performance of mid-sized companies listed on the Bombay Stock Exchange.
– BSE Small-cap: The BSE Small-cap index represents the performance of small-sized companies listed on the Bombay Stock Exchange.
– BSE Large-cap: The BSE Large-cap index represents the performance of large-sized companies listed on the Bombay Stock Exchange.
– Domestic equity markets: Refers to the stock markets within India.
– Q2 earnings: Refers to the financial performance of companies during the second quarter of the fiscal year.
– CPI inflation: Consumer Price Index inflation measures the average price change over time of a basket of goods and services consumed by individuals.
– IIP: The Index of Industrial Production is a measure of the growth rate of industrial sectors in the Indian economy.
– FIIs: Foreign Institutional Investors are entities that invest in financial assets, such as stocks, bonds, or other securities, in a foreign country.
– DIIs: Domestic Institutional Investors are entities that invest in financial assets within their own country.
– Moneycontrol.com: https://www.moneycontrol.com/news/business/markets/indian-markets-end-with-marginal-gains-amid-volatility-7639171.html