Feedback | Tuesday, October 08, 2024

19/08/24 | 5:14 pm | BSE Sensex | Nifty-Sensex

Indian stock indices witness a steady start to a new week; Sensex-Nifty largely flat

The Indian stock market started the week on a steady note, with the benchmark indices Sensex and Nifty closing nearly unchanged on Monday. Early trading showed promise, buoyed by the government’s reduction of windfall tax on crude oil and positive global cues. However, the market lost steam by the end of the session.

The Sensex ended the day slightly lower, dropping 12 points to close at 80,425, while the Nifty edged up by 31 points to settle at 24,573. Among sectoral indices, Nifty Bank declined by 149 points to 50,368, whereas the Midcap Index posted a gain of 105 points, reaching 57,761.

Top performers within the Nifty 50 included Hindalco, BPCL, Tata Steel, Shriram Finance, and LTIMindtree. On the flip side, M&M, Bajaj Auto, Axis Bank, IndusInd Bank, and Tata Motors saw notable declines.

Broader market indices displayed a positive trend, with the BSE MidCap rising by 0.53% and the BSE SmallCap advancing by 1.13%.

Sectoral performance was mixed, with the Nifty Auto index slipping by 0.9% and the Nifty Private Bank index falling by 0.5%. However, the Nifty Metal and PSU Bank indices gained 1.87% and 1.2%, respectively.

Vinod Nair, Head of Research at Geojit Financial Services, said, “The Indian market failed to sustain its initial gains due to profit booking in auto stocks amid slowing demand. However, oil stocks saw a boost following the reduction in windfall tax on crude oil. Additionally, strong US economic data lessened the chances of a recession, and a weaker dollar index supported the possibility of a rate cut at the September FOMC meeting.”

Varun Aggarwal, Managing Director of Profit Idea, added, “Short-term market performance remains cautious due to weak Q1FY25 earnings and subdued topline growth, though long-term prospects are seen as favorable.”

On the global front, US unemployment claims fell to 227,000, while the government deficit surged to USD 1.5 trillion in the first ten months of FY 2024. The UK’s GDP grew by 0.6% quarter-on-quarter in Q2, with CPI inflation edging up to 2.2% in July. Meanwhile, the Euro Area’s industrial production declined by 3.9% year-on-year in June, and Japan’s economy expanded at an annualized rate of 3.1% in Q2. China reported a 2.7% increase in retail sales for July and a 5.1% rise in industrial production.

Investors are now looking ahead to the upcoming speech by US Fed Chair Jerome Powell at the Jackson Hole symposium later this week.

(ani)

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