Benchmark indices rebounded sharply on Monday after opening unfavorable, monitoring weak spot in international markets forward of the US Federal Reserve meet this week. Markets have been skittish forward of the Fed meet as a result of it’s anticipated to announce an rate of interest hike of fifty foundation factors (bps). Low-level shopping for in banking/monetary shares and enhancing macro-economic information led to a pointy rebound from the day’s lows on Monday, mentioned market watchers.
After falling 648 factors intra-day, the Sensex ended decrease by 84.88 factors, or 0.15%, at 56,975.99, whereas its broader peer the Nifty-50 ended decrease by 33.45 factors or 0.20%, at 17,069.10. Among Sensex shares, Titan Company, Wipro and Tech Mahindra had been the highest losers on Monday, falling 2% every, whereas positive factors in HDFC Bank (1.5%) and HDFC (1.3%) countered the losses within the session.
Siddhartha Khemka, head of retail analysis, Motilal Oswal Financial Services, mentioned, “Global as well as Indian markets witnessed some jitters as investors panicked ahead of rate hikes by central banks globally. The US Fed is expected to aggressively hike rates in its upcoming meeting. Further, China’s factory activity data signalled a steeper contraction in activity due to widespread Covid-19 lockdowns, which also dampened risk appetite. However, indices recouped most of its losses, as domestic macro data suggested the manufacturing sector saw faster growth amid high inflation in the month of April.”
Foreign portfolio traders (FPIs) additional continued to promote, after having offered shares value $2.2 billion in April, information from National Securities Depository (NSDL) confirmed. On Monday, FPIs offered shares value Rs 1,853.46 crore within the Indian fairness markets, whereas native institutional traders purchased shares value `1,951.1 crore, provisional information from exchanges confirmed.
The broader markets, nonetheless, underperformed the benchmark indices on Monday. The BSE mid-cap index ended decrease by 0.4%, whereas the small-cap index fell 0.8% within the session. Sector-wise, Nifty Auto, Pharma, IT and Energy ended within the crimson on Monday, with the Nifty IT pack falling 1.5%. Moreover, the IT index has declined greater than 13% within the month of April, amid muted outcomes from high heavyweights and costly valuations. Infosys and Tech Mahindra declined greater than 16% and 17%, respectively, in April. Overall, out of the three,644 shares traded on the BSE, 2,266 declined on Monday.
Experts are of the view that the volatility within the markets is predicted to proceed additional, amid coverage conferences within the present week and the upcoming LIC IPO, which is able to appeal to an enormous variety of retail traders, resulting in some liquidity drying up from markets. “The mega IPO of LIC would also open on May 4, 2022, which is expected to attract many retail investors to the equity market but could suck out some liquidity from the market,” mentioned Khemka.
Source: www.financialexpress.com”