Investor sentiment remains subdued due to the high volatility of the global currency market, leading to a high depreciation of EM currencies, which affects the performance of equities, says Vinod Nair, Head of Research at Geojit Financial services.
Indian indices encountered a week of vulnerability due to adverse global and domestic cues, accompanied by a shift towards safer assets by investors like the US dollar.
Discouraging domestic industrial production, negative wholesale inflation, and elevated CPI inflation contributed to market volatility, he said.
Additional strains emerged from stronger-than-expected US retail sales data; adding to Fed rate hike fears, concerns about US bank rating downgrades, and a sudden Chinese central bank rate cut hindered recovery and sustained selling pressure, he added.
Escalating US bond yields are predicted to restrict foreign investments in India, further impacting market dynamics. With moderate core inflation & transitory July retail CPI data, the market did not foresee a rate hike. The metal sector bore the brunt this week due to sluggish industrial data and concerns about Chinese demand.
Mayank Mehraa, smallcase manager and Principal Partner, Craving Alpha said Nifty's 3.4% four-week descent from nearly 20,000 to 19,300 indicates a pause in its upward trajectory, with this week seeing a 0.7% fall.
Factors include re-evaluation of the strong trend driven by Indian indicators and FII inflows. The US 20-year T Bond rise to 4.5% may divert liquidity from emerging markets like India.
Elevated Indian inflation figures might impact expected rate cuts or lead to hikes. Sectors like Metal & Mining, Larger Auto players like Hero Moto and Tech companies contributed to the fall. The ongoing correction could extend through September, with Q2 results possibly sparking a new bullish phase in October, he said.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said with Fed Chair Powell's speech and more macro data lined up globally next week, we expect domestic as well as global markets to remain under pressure. Also, RBI would release its meeting minutes on Thursday.
However, action is likely to continue in the broader market along with sectorial rotation. Index heavyweight Reliance would be in focus as Jio financial services is set to be listed on Monday, he added.
Rupak De, Senior Technical analyst at LKP Securities said the index has consistently remained below its 21-day Exponential Moving Average (EMA), a sign that underscores the prevalence of a bearish trend. On the lower end, support is placed at 19250. A fall below 19250, may trigger a correction towards 19000 and lower. On the higher end, resistance was placed at 19500.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities said the short term trend of Nifty continues to be weak with range bound action. There is a possibility of a downside breakout of the immediate support of 19250 levels and the Nifty could slide down to another base area of 19100-19000 levels in the near term. Any upside bounce could find resistance around 19400 levels.
Devarsh Vakil - Deputy Head Retail Research, HDFC Securities said there is a possibility of down side breakout of the immediate support of 19250 levels and the Nifty could slide down to another base area of 19100-19000 levels in the near term. Recent swing high of 19482 is expected to act as a short-term resistance for the Nifty.
India’s CPI inflation eases to 11-month low of 4.83 pc in April
India’s consumer price inflation eased to an 11-month low of 4.83 per cent in April, bringing more relief to household budgets, figures released by the Ministry of Statistics showed on Monday.
Led by Adani Group, India saw robust deal-making activity in April: Report
India Inc saw robust deal-making activity in April, with three major domestic consolidations by the Adani Group valued at $2 billion, representing 38 per cent of the total deal values, a new report showed on Monday.
UPI payments see surge in India, leading people to overspending too: Experts
As India's digital and less-cash journey gains steam, more and more people are not only purchasing their daily essentials via unified payments interface (UPI) mode of digital transactions but also costly home appliances, high-end gadgets and designer apparels, among other things.
After 10 years of tech innovations, India geared up for next phase of growth: Industry leaders
It was former Prime Minister Atal Bihari Vajpayee who announced May 11 as National Technology Day, to commemorate the Pokhran nuclear tests conducted by the Indian Army in Rajasthan in 1998.
NSE, BSE to conduct special trading session on May 18
Stock exchanges informed their trading members that a special live trading session is scheduled on Saturday, 18th May 2024 together with participating MIIs -- BSE, NSE, ICCL, NCL, CDSL, NSDL, and MSEI. During this special live trading session, mentioned MIIs will perform intra-day switch-over to their respective Disaster recovery site.
India's services sector clocks robust growth in April, lifts business confidence to 3-month high
India's services sector continued to register robust growth in April on the back of strong domestic and foreign demand, which lifted business confidence to a three-month high, according to an HSBC survey published on Monday.
Adani Green reports 30 pc EBITDA growth in FY24, revises target to 50 GW for 2030
Adani Green Energy Ltd (AGEL) on Friday reported 30 per cent EBITDA growth at Rs 7,222 crore in FY24, as the renewable energy (RE) major revised its target for 2030 to 50 gigawatt (GW) from 45 GW.
DMs, SPs of violence-hit MP districts transferred
The farmers agitation entered its eighth day on Thursday. The peasants have been on strike since June 1, demanding loan waiver and fair price for their produce.