Image used for representative purpose only.
| Photo Credit: Reuters

Equity benchmark indices Sensex and Nifty declined in early trade on Thursday (August 8, 2024) ahead of the Reserve Bank of India’s monetary policy decision.

Continuous foreign fund outflows and weak trends in the U.S. markets also drove domestic equities lower during initial deals.

The 30-share BSE Sensex declined 325.97 points to 79,142.04. The NSE Nifty dipped 99.1 points to 24,198.40.

Among the 30 Sensex firms, Infosys, JSW Steel, Larsen & Toubro, Power Grid, UltraTech Cement and Tata Steel were the biggest laggards.

Tata Motors, Titan, ITC and Sun Pharma were among the gainers during the initial trade.

In Asian markets, Tokyo, Shanghai and Hong Kong traded higher while Seoul quoted lower.

The U.S. markets ended lower on Wednesday.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,314.76 crore on Wednesday, according to exchange data.

“During the last four days FIIs have sold ₹20,228 crore in the cash market. This is a rational thing to do given India’s elevated valuations and the concerns surrounding recession fears in the U.S. and further issues relating to the unwinding of the yen carry trade,” said V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Global oil benchmark Brent crude climbed 0.42% to USD 78.66 a barrel.

On Wednesday, the BSE benchmark Sensex rallied 874.94 points or 1.11 per cent to settle at 79,468.01. During the day, it jumped 1,046.13 points or 1.33% to 79,639.20.

The NSE Nifty jumped 304.95 points or 1.27% to 24,297.50. Intraday, it surged 345.15 points or 1.43% to 24,337.70.

On the macroeconomic front, the Reserve Bank’s rate-setting panel started its three-day deliberations for the next set of bi-monthly monetary policy on Tuesday amid expectations of no change in benchmark interest rate in view of concerns on inflation and economic growth remaining steady.

The decision of the RBI Governor Shaktikanta Das-headed six-member Monetary Policy Committee (MPC) will be announced later on the day.

A screen displays stock numbers outside the Bombay Stock Exchange (BSE) building in Mumbai.
| Photo Credit: PTI

Equity market benchmark indices Sensex and Nifty tumbled in early trade on August 5 in line with extremely weak trends in global markets amid fears of a slowdown in the U.S .economy and foreign fund outflows.

The 30-share BSE Sensex tanked 2,401.49 points to 78,580.46 in early trade. The NSE Nifty tumbled 489.65 points to 24,228.05.

From the Sensex pack, Tata Motors, Tata Steel, JSW Steel, Adani Ports, Maruti and Reliance Industries were the biggest laggards.

Sun Pharma and Hindustan Unilever were trading in the positive territory.

In Asian markets, Seoul, Tokyo and Hong Kong were trading sharply lower while Shanghai quoted higher.

The U.S. markets ended significantly lower on August 2.

“The rally in the global stock markets has been driven mainly by consensus expectations of a soft landing for the U.S. economy. This expectation is now under threat with the fall in U.S. job creation in July and the sharp rise in the U.S. unemployment rate to 4.3%. Geopolitical tensions in the Middle East also are a contributing factor,” said V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,310 crore on August 2, according to exchange data.

“Anxiety remains high, especially after August 2nd’s unexpectedly weak U.S. July jobs report, suggesting that volatility will be the hallmark of the day,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Global oil benchmark Brent crude climbed 0.35% to $77.08 a barrel.

Amid widespread selling pressure, the BSE benchmark plunged 885.60 points or 1.08% to close at 80,981.95 on August 2. The broader Nifty of NSE dropped 293.20 points or 1.17% to end at 24,717.70.

Brokers react after the Sensex surge in early morning trade. File photo
| Photo Credit: ANI

Equity benchmark indices started the trade on an optimistic note on Wednesday, July 3, 2024, with the Sensex breaching the historic 80,000-mark for the first time ever and the Nifty hitting its fresh lifetime high, amid heavy buying in bank stocks and firm global market trends.

The 30-share BSE Sensex jumped 597.77 points to hit a new lifetime high of 80,039.22. The Nifty climbed 168.3 points to hit a fresh record peak of 24,292.15.

Among the Sensex pack, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance, IndusInd Bank, Bharti Airtel and Nestle were the biggest gainers.

Tata Consultancy Services, Sun Pharma, Infosys and Tata Motors were among the laggards.

In Asian markets, Seoul, Tokyo and Hong Kong were trading in the positive territory while Shanghai quoted lower.

US markets ended higher on Tuesday.

The BSE benchmark declined 34.74 points or 0.04 per cent to settle at 79,441.45 in a volatile trade on Tuesday. During the day, it jumped 379.68 points or 0.47 per cent to hit a record peak of 79,855.87.

The Nifty declined by 18.10 points or 0.07 per cent to 24,123.85. Intra-day, it climbed 94.4 points or 0.39 per cent to hit a lifetime high of 24,236.35.

Global oil benchmark Brent crude climbed 0.56 per cent to USD 86.72 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,000.12 crore on Tuesday, according to exchange data.

All the 30 Sensex companies were trading in the green. Power Grid, NTPC, State Bank of India, Larsen & Toubro, Mahindra & Mahindra, IndusInd Bank and Axis Bank were the biggest gainers from the Sensex pack.
| Photo Credit: Reuters

Investors’ wealth jumped ₹12.48 lakh crore in morning trade on June 3 as the benchmark equity index Sensex hit its lifetime high after exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls.

The 30-share BSE Sensex jumped 2,777.58 points or 3.75% to hit a record peak of 76,738.89 in early trade.

Also read | GDP growth surges to 8.2% on manufacturing gains

Following the huge rally in equities, the market capitalisation of BSE-listed companies climbed ₹12,48,952.68 crore to hit an all-time peak of ₹4,24,61,833.82 crore ($5.10 trillion) during the morning trade.

Exit polls on June 1 predicted that Prime Minister Narendra Modi will retain power for a third straight term, with the BJP-led NDA expected to win a big majority in the Lok Sabha polls. The counting of votes will take place on June 4.

“The exit poll numbers are very strong for the incumbent government,” Narendra Solanki, Head Fundamental Research – Investment Services, Anand Rathi Shares and Stock Brokers, said.

“Overall it’s positive for the markets in short as well as long term. Also, the recent released good GDP growth data should provide support to existing positive momentum,” he added.

India’s economy grew by 8.2% in the fiscal year that ended in March, cementing the country’s position as the fastest-growing major economy in the world.

“The GDP numbers which came on Friday were better-than-expected with 8.2% growth. This will provide fundamental support to the market,” said V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Also read | How do markets look at election results?

All the 30 Sensex companies were trading in the green. Power Grid, NTPC, State Bank of India, Larsen & Toubro, Mahindra & Mahindra, IndusInd Bank and Axis Bank were the biggest gainers from the Sensex pack.

In Asian markets, Seoul, Tokyo and Hong Kong were quoting with gains while Shanghai traded lower. The U.S. markets ended mostly higher on May 31. Foreign Institutional Investors (FIIs) bought equities worth ₹1,613.24 crore on Friday, according to exchange data.

A man prays at the Bombay Stock Exchange building amid the presentation of the Interim Budget 2024 by the Union Finance Minister Nirmala Sitharaman in Mumbai on February 1, 2024. 
| Photo Credit: ANI

The stock markets remained unimpressed with the proposals announced in the interim budget and key indices, after witnessing a sea-saw movement throughout the day ended with losses. Whatever gains were seen prior to the presentation of the budget were wiped out.

The S&P BSE Sensex lost 107 points or 0.15% to 71,645 points. The NSE Nifty-50 Index also dopped 28 points or 0.13% to 21,697 points.

Among the Sensex stocks L&T was down 2.38%, Ultratech down 2.26% and JSW Steel down 2.03. This is despite several positive announcements concerning the infrastructure sector.

According to analysts the Interim Budget turned out to be a non-event. and both the Sensex and Nifty were confined to a narrow range. 

Eight out of thirteen sectors were in the red with PSU Banks and Auto stocks limiting the fall. Among individual stocks, One97 Communications shares plunged 20% after the RBI barred Paytm Payments Bank from accepting deposits or top-ups in any customer account.

Rajesh Bhosale, Technical Analyst, Angel One said, “In the upcoming session, the market may continue to respond to the aftermath of the budget announcement, with individual themes playing a significant role for traders seeking out performance opportunities. As the focus shifts from the key event, attention will revert to global developments, necessitating vigilance on the global front by traders.”