Indian markets slightly close while sectoral indexes rise
May 10, Mumbai (Maharashtra) [India]: After a decline in stock indexes on Thursday, Indian stock markets saw a little increase on Friday.
The Sensex gained 260.3 points to settle at 72,664.47, while the Nifty 50 index advanced by 0.44 percent to close at 22,055. Every sectoral index saw advances, with the exception of the IT, Realty, PSU Bank, and Bank sectors. The sectors leading the rising trend were metal, oil & gas, FMCG, and auto.
“This week can be summed up in two words: erratic and unpredictable. Large outflows were consistently pushed by jittery overseas investors. India Vix increased for the twelfth day, reaching a 19-week high, according to banking and market analyst Ajay Bagga.
He went on, “We still expect that because this is mostly election-related anxiety, this will last until June 1 when exit polls are out, at which point the markets will turn around and start to rise on June 4. There will be agony for three weeks. Get ready for more suffering. Tragic yet likely.”
The top gainers on the Nifty 50 list were Hero Motocorp, BPCL, Power Grid, NTPC, and Eicher Motors; the top losers were TCS, Cipla, LTIM, Kotak Bank, and Infosys. NSE market figures show that 2,703 equities were traded on the exchange, with 1,660 ending the day higher, 926 down, and 117 unchanged.
According to Vinod Nair, head of research at Geojit Financial Services, “Indian markets remained positive largely; however, a trend of sell-on rallies is emerging given domestic premium valuation and election jitters creeping into investors’ minds given lower voter turnout.”
He said, “Financials remained weak due to signs of contraction in NIMs and the regulatory actions taken by the RBI.” Given the slow pace of rate reductions, worries about inflation, the slowdown of corporate profitability, and the premium valuation, FIIs are still sellers. In addition to US consumer and inflation statistics, the market will be watching for any potential US trade steps against Chinese electric vehicle producers.”
Friday’s session saw gains across the board for the wider market indexes, with Nifty Midcap 50 and Nifty Midcap Select standing out as big winners after rising more than 1 percent.
According to NSDL statistics, net sales of Indian equities by foreign portfolio investors (FPIs) have increased recently, with total sales of Rs 10,413 crore in May and Rs 8,671 crore in April.
In the commodities market, gold prices increased after a significant climb the day before, while oil prices continued to rise for a third day on the back of important technical milestones. WTI Crude Oil Futures continued to rise on optimism about US and Chinese demand; rising imports of crude oil from China in April suggested that demand was strengthening. A spike in US weekly unemployment claims, however, raised hopes that the Federal Reserve would lower interest rates this year.
