Stock Market Today: Sensex, Nifty Snap Six-Day Losing Streak; FPIs Turn Net Sellers
Sensex closed up 634.65 points, or 1.01%, at 63,789.80, while the NSE Nifty 50 was 190 points or 1.01% higher at 19047.25.
KEY HIGHLIGHTS
Sensex, Nifty Snap Six-Day Losing Streak: Market Wrap
Sensex, Nifty Rise Over 1% As RIL, Infosys Lead: Midday Market Update
Markets At Day's High
Reliance Holders Approves Appointment Of Isha Ambani, Akash Ambani, Anant Ambani As Non-Executive Directors
ACC Shares Surge After Posting A Net Profit Of Rs 387.9 Crore
FPIs Turn Net Sellers For The Third Consecutive Day
Overseas investors turn net sellers of Indian equities on Friday
Foreign portfolio investors off loaded stocks worth Rs 1,500.13 crore, according to provisional data from the National Stock Exchange.
Domestic institutional investors turned out to be net buyers and mopped up equities worth 313.69 crore, the NSE data showed.
Foreign institutions have been net buyers of Rs 100163 crore worth of Indian equities so far in 2023, according to data from the National Securities Depository Ltd., updated till the previous trading day.
The S&P BSE Sensex closed up 634.65 points, or 1.01%, at 63,789.80, while the NSE Nifty 50 was 190 points or 1.01% higher at 19047.25.
Yield On The 10-Year Bond Ends Flat
The yield on the 10-year bond closed flat at 7.36% on Friday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakened about 2 paise to close at 83.25 against the U.S dollar on Friday.
It closed at 83.23 on Thursday
Source: Bloomberg
Sensex, Nifty Snap Six-Day Losing Streak: Market Wrap
India's benchmark stock indices advanced over 1% on Friday after declining for six consecutive day following geopolitical uncertainties stemming from the Israel-Hamas war and resultant rise in crude prices, coupled with higher-for-longer U.S. rates.
"The domestic market recovered well compared to yesterday’s sharp corrections, due to restrained FII’s selling along with moderation in currency and global bond yield volatility. Till date, the Q2 results outcome is decent, which is in-line with the buoyant estimate. Yet, the market is not enthusiastic as we are at the cusp of earnings downgrade in anticipation of further slowdown in the world economy due to elevated interest rate and geopolitical risk", Vinod Nair, Head of Research at Geojit Financial Services said.
The S&P BSE Sensex closed up 634.65 points, or 1.01%, at 63,789.80, while the NSE Nifty 50 was 190 points or 1.01% higher at 19047.25.Intraday, the S&P BSE Sensex rose 1.21% to 63,913.13 and NSE Nifty 50 gained 1.16% to 19,076.15.
Domestic inflow in India has been very resilient, strong and thereby, actually helped the overall indices to not give away those kind of gains and to also decrease the overall volatility," Vaibhav Sanghavi, chief executive officer at ASK Hedge Solutions told to BQ Prime.
The primary reason for the correction is hardening of U.S. bond yields to above 5% which has in a sense crossed an important psychological level, Vijay Chandok, managing director, ICICI Securities said. "This being a benchmark for determining of value virtually of all asset classes becomes an important number to watch."
"Investors need to watch any signs of weakening U.S. inflation or economy that could potentially trigger a reversal of stance by the Fed on interest rates," Chandok said. "Any indication of that is likely to reflect in reduction in the benchmark yield in U.S and that would be a positive for India especially because of strong earnings and fundamentals of Indian equities."
"After relentless selling in recent days, the Nifty has temporarily paused its decline due to an oversold chart setup. However, the index closed significantly below the critical breakdown level of 19,250. As long as it stays below 19,250, the market may continue to be inclined towards selling on any upward movements", Rupak De, Senior Technical analyst at LKP Securities.
"On the downside, a resumption of weakness is expected if the index falls below 18,800. This is because put writers are likely to defend the Nifty with substantial positions at 18,800, with immediate support placed at 19,000", Rupak said.
ITC Ltd., Dr. Reddy's Laboratories Ltd., Asian Paints Ltd., UPL Ltd., and SBI Life Insurance company Ltd. were negatively adding to the change in the Nifty 50 Index.
Whereas, Reliance Industries Ltd., Axis Bank Ltd., Infosys Ltd., State Bank of India Ltd., and Larsen & Toubro Ltd. were positively contributing to the change.
The broader market indices outperformed the larger peers; the S&P BSE MidCap Index was up 1.70%, whereas S&P BSE SmallCap Index was 1.89% higher.
All the 20 sectors compiled by BSE advances. With S&P BSE Services gaining the most.
The market breadth was skewed in the favour of the buyers. About 2,823 stocks rose, 842 declined, while 134 remained unchanged on the BSE.
Sectoral, Nifty Media and Nifty Metal declined the most, while all the index contributed negatively this week.
