The stock market today saw the Sensex and Nifty 50, the domestic benchmark indices, finishing Wednesday’s trading session mixed amid a slightly choppy session. The Nifty IT index outperformed the other 13 key industry indices after positive US economic data. On August 14, the IT index rose 1.5%, with TCS, HCLTech, and L&T Technology Services driving the uptick.
The 30-share BSE Sensex ended higher by 149.85 points or 0.19% at 79,105.88 level, while the Nifty 50 closed at 24,143.75 level, up 4.75 points or 0.02%. The Nifty Midcap 100 closed up 0.59%, while the Nifty SmallCap 100 closed 0.64%.
Vinod Nair, Head of Research at Geojit Financial Services, noted that the domestic market experienced a restricted range of trading despite a good rebound in global markets. Negative sentiment in the country and the possibility of profit downgrades made investors wary.
A drop in WPI inflation, primarily due to decreased food costs, indicates that the RBI is getting closer to its goal of price stability. The IT index slightly increased, indicating hope for better US CPI statistics anticipated later in the day, which may expand the Fed’s room to maneuver in its loose monetary policy.
Global stocks had sloppy trading on Wednesday, with Japan’s benchmark index starting to rise but losing momentum when it was revealed that the prime minister will not run for reelection as head of the ruling party. Germany’s DAX rose 0.4% to 17,888.68, France’s CAC 40 gained 0.7% to 7,324.59, and the FTSE 100 in Britain increased 0.6% to 8,280.28.
Japan’s benchmark Nikkei 225 increased 0.6% to close at 36,442.43 after a volatile day. Australia’s S&P/ASX 200 climbed 0.3% to 7,850.70, while the Kospi of South Korea increased by over 0.9% to 2,644.50. The Shanghai Composite fell 0.6% to 2,850.656, and the Hang Seng in Hong Kong fell around 0.4% to 17,113.36.
In the Nifty 50 index, 24 stocks settled in the green while the rest ended in red. Tata Consultancy Services Ltd, HCL Technologies Ltd, Tech Mahindra Ltd, Infosys Ltd, and Mahindra & Mahindra Ltd were the top gainers, while Divi’s Laboratories Ltd, Hero MotoCorp Ltd, Coal India Ltd, UltraTech Cement Ltd, and Dr. Reddy’s Laboratories Ltd were among the laggards.
Barring IT, all other sectoral indices ended in red, with the Nifty Metal Index falling down by over a percent yet again.
Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, believes that Nifty 50 wavered in an uninspiring session. The benchmark Nifty 50 was also uninspired by the latest WPI inflation, which cooled to a 3-month low of 2.04% in July as food prices declined. The US CPI Inflation numbers will be closely watched tonight to see if the inflation figures cool further to make room for more rate cuts by the Fed this year.
Technical analysts Rupak De from LKP Securities and Tejas Shah from JM Financial & BlinkX provided insights on the technical views of the market. De mentioned that the overall trend for Nifty 50 is likely to remain weak, with resistance expected at 24,250/24,500. Shah highlighted that the Bank Nifty was underperforming compared to Nifty 50 and could test the psychological support of 49,000 on the lower side.
In conclusion, the stock market today saw mixed results with the Sensex and Nifty 50 closing in a slightly choppy session. The IT index outperformed, while global markets experienced sloppy trading. Analysts provided insights on market trends and technical views, emphasizing the importance of upcoming economic data. Investors are advised to seek advice from certified experts before making any investment decisions. Stay updated with the latest business news and market updates by downloading The Mint News App.