Final sale eats away at first gains
Mumbai: On Wednesday, the global equity market saw a bullish trend, which supported purchasing in metal and commodities companies, while the major equity indexes Sensex and Nifty saw a little increase for the fourth consecutive session. Traders noted that strong selling pressure on the telecom, IT, and IT sectors limited the advance. The 30-share BSE Sensex ended the day at 73,852.94, up 114.49 points, or 0.16 percent. It increased by 383.16 points, or 0.51%, to 74,121.61 throughout the day. At 22,402.40, the NSE Nifty increased 34.40 points, or 0.15 percent.
Towards the close of the day, there was considerable selling pressure on the indexes, wiping out some of the early gains.
“As Q4 earnings remained largely muted, with weak results from IT and a few index heavyweights results also disappointing, Indian markets lagged behind their Asian peers.” Nonetheless, the Indian composite PMI reached a multi-year high, indicating domestic resilience and providing some buoyancy in the overall economy, helped by robust manufacturing and service sectors. With the Middle East’s tensions decreasing and oil prices falling, investor moods improved globally, according to Vinod Nair, head of research at Geojit Financial Services.
“As geopolitical tension in the Middle East subsided, investors’ attention turned to the earnings season, and global markets turned positive.” The Nifty increased in tandem with its global rivals due to strong domestic macrodata and consistent Q4 performance. The head of retail research at Motilal Oswal Financial Services Ltd. is Siddhartha Khemka.
The BSE smallcap gauge increased by 0.79 percent and the midcap index increased by 0.92 percent in the overall market. The indexes that saw the biggest gains were metal, which increased 2.83 percent, followed by commodities, industrials, 1.13 percent, and oil and gas, 0.96 percent. The trailing industries were teck, IT, and telecom. India’s industrial and service sectors drove the country’s economic growth in April.
