At 4:01 PM on a recent trading day, the markets struggled to maintain the previous day’s recovery, ultimately ending over half a percent lower due to weak global cues. The Nifty, after an initial dip, showed volatile movements throughout the day, ultimately closing near the day’s low at 24,117. Sectors like IT, metals, and energy were hit the hardest, while the broader indices managed to outperform slightly, posting only minor losses.
The ongoing global uncertainty is making market participants cautious, and short-term relief seems unlikely. The Nifty is currently facing resistance around the 24,350 mark, and a decisive break below 23,900 could potentially lead to a further decline. Traders are advised to adjust their positions with a hedged strategy to navigate the current volatility.
Ajit Mishra, SVP of Research at Religare Broking, shared his views on the market conditions, highlighting the need for caution and strategic positioning in the face of uncertainty.
As the clock struck 4:00 PM, another expert weighed in on the market dynamics. Vinod Nair, Head of Research at Geojit Financial Services, mentioned that the domestic market reversed its earlier gains due to the RBI’s decision to hold its current policy. The caution to revise upward the CPI and moderate the growth forecast for Q1 added to the market’s concerns. Meanwhile, the global market’s focus on US job data and the potential for a deeper slowdown raised concerns about a possible recession in the US economy, prompting speculations about faster rate cuts by the Federal Reserve.
At 2:08 PM, Mr. Dhiraj Relli, MD, and CEO at HDFC Securities, provided insights into the recent RBI MPC decision to keep the policy repo rate unchanged at 6.5 percent. The decision, in line with market expectations, highlighted the challenges posed by elevated food prices and the need for sustainable inflation targeting. The GDP forecast for Q1FY25 was revised slightly downward, while inflation forecasts were adjusted to reflect the current economic conditions. Mr. Relli emphasized that a rate cut in the near term seems unlikely, given the current economic outlook.
In the midst of market fluctuations and expert opinions, positive news emerged at 1:55 PM when shares of Aadhar Housing Finance soared 5% on solid Q1 earnings. The company reported strong growth in both topline and bottom line for the April-June quarter of FY25, boosting investor confidence in the housing finance sector.
Additionally, at 1:39 PM, Unichem Labs reported a turnaround performance in the June quarter results, with a significant increase in net profit, revenue, and EBITDA compared to the previous year. This positive performance indicated resilience and adaptability in the pharmaceutical industry amidst challenging market conditions.
Overall, the market dynamics at 4:01 PM reflected a mix of challenges and opportunities, with experts providing valuable insights to help investors navigate the uncertainties and make informed decisions in the ever-changing financial landscape.