Nifty ends flat despite supportive global markets
Nifty swung between gains and losses on Tuesday and closed almost flat despite supportive global markets, says Deepak Jasani, Head of Retail Research, HDFC Securities.
IANS
Aug 22, 2023 06:28
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New Delhi, Aug 22 (IANS) Nifty swung between gains and losses on Tuesday and closed almost flat despite supportive global markets, says Deepak Jasani, Head of Retail Research, HDFC Securities.
At close, Nifty was up 0.01 per cent or 2.9 points at 19396.5. Volumes on the NSE continued to be on the lower side. Broad market indices gained 0.9-0.95 per cent outperforming the Nifty even as the advance decline ratio remained firm at 1.79:1.
Global stocks extended their comeback rally on Tuesday. Asian stock markets snapped an eight-day losing streak on Tuesday, helped by a rebound in beaten-down Chinese shares. European stocks rose driven by a 1.8 per cent jump in the tech sector on optimism surrounding the world's most valuable chipmaker Nvidia ahead of its quarterly results on Wednesday.
Meanwhile in the US, benchmark 10-year yields climbed to 4.366 per cent - their highest level since 2007 and up almost 40 bps month-to-date, Deepak Jasani said.
BHEL announced an order win worth Rs 4,000 crore from Adani-group subsidiary Mahan Energen in which BHEL is expected to supply power generating equipment to Mahan Energen for an upcoming 2x800 power project at Bandhaura, Madhya Pradesh. BHEL will supply heavy equipment like boilers, turbines, says Omkar Kamtekar, Research Analyst, Bonanza portfolio.
Patel Engineering rallied to 52-week high after its JV bagged a project worth Rs 1,275 crore. Around 2150 shares advanced, 1390 shares declined and 124 shares unchanged. Among the top gainers were Adani Enterprises, HDFC Life, ITC, NTPC and Hero MotoCorp, while BPCL, Cipla, Bajaj Finserv, Eicher Motors and TCS were among the top losers, he said.
Vinod Nair, Head of Research at Geojit Financial Services, said despite the support of positive international markets, Indian equities struggled to maintain their upward momentum due to lingering apprehensions over ongoing global uncertainties.
Sectors closely tied to the Western economy, such as IT and pharma, faced challenges, while domestic-oriented sectors, alongside mid-and small-caps, exhibited resilience and gained traction. The influence of higher bond yields and concerns about potential rate hikes in the US is prompting FIIs to withdraw funds from the domestic market, contributing to the market's volatility, he added.
