Benchmark indices ended in the red on Friday on the back of profit taking seen in IT stocks as well as PSU stocks, said S. Ranganathan, Head of Research at LKP Securities.
The 6 per cent deficiency in monsoon was an important factor with several states witnessing deficits across districts. The Evergrande Bankruptcy in China though was brushed away since real-estate loans in India are by and large regulated well now, Ranganathan said.
Domestic equities had a weak start in line with its global peers. Nifty remained in the negative territory throughout the session and closed with a loss of 83 points (-0.4 per cent) at 19,282 levels, while the BSE Sensex dropped 202.36 points or 0.31 per cent to settle at 64,948 levels.
Among sectors, PSU bank, metals and FMCG ended in the green.
Global markets extended their losses as concerns over higher interest rates and slowing China’s economy weighed on investors. Even domestically, markets have been consolidating in the absence of any positive trigger and consistent selling by FIIs, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.
Vinod Nair, Head of Research at Geojit Financial Services, said concerns regarding inflation and shifts in investor preferences towards safer assets dampened overall market sentiment for domestic equities.
Fears of a US Fed rate hike, coupled with a decline in global equities, exerted additional downward pressure, specifically on IT stocks. Higher US bond yields and default risk in China are poised to prompt FIIs to adopt a more prudent stance when considering investments in the emerging markets, Nair said.
VC funding drops 22.5 pc in China in Jan-Nov as India sees surge
As venture capital (VC) funding surged in India this year, China saw a 22.5 per cent decline in VC funding by both volume and value in the January-November period, a report showed on Thursday.
Indian share market opens in green, Nifty above 23,800
At around 9:37 am, Sensex was trading at 78,744.55 after gaining 271.68 points or 0.35 per cent, while the Nifty was trading at 23,812.50 after gaining 84.85 points or 0.36 per cent.
Indian share market ends in red ahead of key global policy decisions
Ahead of key policy decisions especially from the US Federal Reserve, the Indian stock market closed in red on Tuesday as selling was seen in the PSU bank, auto, IT, financial service, pharma, FMCG, metal, and realty sectors of Nifty.
Buy on dips strategy working well in Indian stock market amid sharp rebound
The surge in the Indian stock market on Friday helped the Indian benchmark indices end the week on a positive note. A strong 2,000-point rebound from the lows suggests that the buy-on-dips strategy is working well in the market, experts said on Saturday.