The Indian equity markets closed lower on Thursday, with the Nifty 50 dropping 1.74% to 24,117 points and the BSE Sensex dipping 0.73% to 78,886.22 points. The Mid-cap index outperformed the Nifty 50, with the Nifty Midcap 50 closing 0.16% lower and the Nifty Small Cap 100 closing 0.41% lower.
The Reserve Bank of India (RBI) Governor Shaktikanta Das announced the bi-monthly monetary policy on August 8, keeping the key benchmark interest rates unchanged at 6.5%. The central bank’s focus remains on inflation derived from food, leading to the decision to stick with the „withdrawal of accommodation“ policy.
Srikant Chouhan, Head of Equity Research at Kotak Securities, shared insights on the equity markets, cautioning investors to be careful in a volatile market. Ajit Mishra, SVP of Research at Religare Broking, highlighted global uncertainty making market participants cautious, with short-term relief unlikely.
Chouhan noted that the benchmark indices witnessed a volatile trading session on Thursday, with the Nifty ending 197 points lower and the Sensex down by 582 points. He mentioned that IT and Metal indices lost the most, while some buying was seen in selective Media and Pharma stocks. Chouhan advised level-based trading as the ideal strategy in the current market conditions.
Mishra emphasized the ongoing global uncertainty, urging traders to adjust their positions with a hedged strategy to navigate the volatility. He pointed out that the Nifty is facing resistance around the 24,350 mark, and a break below 23,900 could lead to further decline.
In terms of stock recommendations for Friday, equity market experts Sumeet Bagadia and Ganesh Dongre suggested five stocks to buy. Bagadia recommended Century Plyboards and HDFC Life Insurance, citing technical indicators and market conditions supporting a bullish outlook. Dongre recommended Manappuram Finance, IndusInd Bank, and Hindustan Unilever, highlighting bullish reversal patterns and potential upward trends in these stocks.
It’s important to note that the views and recommendations provided by individual analysts, experts, and broking companies are not endorsed by Mint. Investors are advised to consult certified experts before making any investment decisions.
In conclusion, the Indian equity markets closed lower on Thursday, with key indices facing volatility amid global uncertainty. Investors are urged to exercise caution and adopt hedged strategies to navigate the current market conditions. Stock recommendations provided by experts offer insights into potential trading opportunities, but thorough research and analysis are essential before making investment decisions.