India has added 287 new FPIs this year, so far, even as foreign funds have net sold shares worth Rs 1.5 lakh crore
The Indian share market ended flat with a negative bias on Tuesday, with gains in banking, auto and steel stocks offset by selling in FMCG, IT and select heavyweight counters.
Share Market Today: The H-1B visa-led IT downdraft and softer pharma have overshadowed GST-aided domestic themes, leaving breadth negative and the Nifty below 25,200.
Sensex jumped around 245% from 25,000 in May 2014 to nearly 86,000 in September 2024 under PM Modi's leadership.
Some analysts opine that a 25 bps rate cut by the US Federal Reserve should be expected, while others hint at a bumper 50 bps cut.
The upmove in Indian equities came on the back of upbeat global cues, easing volatility, and rising expectations that the US Federal Reserve will deliver a rate cut at its policy meeting next week.
Improving trade links with the world’s second-biggest economy add to a string of positives for India, including the prospect of further central bank interest-rate cuts
Persistent foreign portfolio outflows, potential impact of US tariffs and stretched valuations are being cited as some of the reasons behind Indian stock markets' underperformance.
On September 1, all sectoral indices, expect FMCG, were trading in the green with IT stocks leading the gains.
The weak market sentiment will likely continue as long as Nifty remains below 24,600 and Sensex below 80,600, said an analyst
According to LSEG IBES data, forward 12-month earnings estimates for India's large and mid-cap firms have been cut by 1.2% in the past two weeks, the sharpest in Asia
In the most recent fund manager survey, 30% said they are underweight on India, followed by 20% for Thailand and 10% for Malaysia
The rebound came after last week’s tariff-driven volatility, which had dragged the Nifty to a three-month low and marked its longest weekly decline in five years
Yesterday's intraday pullback and strong close indicate possible short-term momentum building up for the sessions ahead
Since 2009, Nifty has had a positive close in July on 75 percent of the occasions, making it the month with the best chance of ending with gains, if only looks at the data for last 16 years.
Technical view: Bank Nifty hit a fresh lifetime high of 57,000 today. Analysts say that the overall trend in the index remains firmly positive.
Sonthalia cautioned that while the recent surge in defense stocks, partly fueled by emergency procurement under 'Operation Sindoor', has created momentum, valuations remain frothy. 'The narrative is strong, but fundamentals need to catch up,' he said.
Broader markets staged a comeback as well, with the Nifty Midcap 100 inching up 0.22 percent and the Smallcap 100 advancing 0.41 percent.
Divergence between index and median returns signals growing profit concentration and shifting market dynamics
The Nifty IT was the star of the show, galloping over four percent with gains led by IT services player HCL Technologies
While reiterating the bullish view on India, Morgan Stanley India's Ridham Desai in the note cited factors that have helped India outperform in a period of global selloff, though the risk of testing 'multi-month low' remains, he added.
All the 13 major sectors are trading in green. High-weightage financials rose 2.2%. The broader smallcaps and midcaps gained 2.57% and 2%, respectively.
On Friday, Trump had announced an exemption on a range of consumer electronics from a planned 125 percent tariff on Chinese goods and a 10 percent global flat rate, which turned out to be temporary, as on Sunday, he said these items are ‘just moving to a different Tariff bucket’.
Stock markets in India will remain shut for two days to observe Dr. Baba Saheb Ambedkar Jayanti and Good Friday.
Sensex, Nifty surged on hopes of a bilateral trade agreement (BTA) between India and the United States, before the end of the 90-day tariff pause, set to expire on July 9.