Snapping a four-day losing streak, India's benchmark indices Sensex and Nifty closed marginally up on Monday, despite weak global trends and foreign fund outflows impacting investor sentiment. The 30-share BSE Sensex eked out a gain of 14.54 points or 0.02 per cent to settle at 66,023.69 after gyrating 461.6 points during the day, while the broader Nifty settled slightly up by 0.30 points at 19,674.55.
Earlier in the day, domestic equities started on a flat note with Sensex trading 30.60 points higher at 66,039.75 by 9:35 am and Nifty 50 down by 4 points to trade at 19,669.95. The broader markets showed mixed performance with some sectors registering gains while others slipped.
In sectoral terms, Nifty Financial Services gained 0.26 per cent, Nifty Metal jumped 0.22 per cent and Nifty Auto rose 0.21 per cent. On the other hand, sectors such as Nifty Pharma slipped by 0.21 per cent, followed by Nifty IT and Nifty FMCG each falling by 0.18 per cent.
Shares of Delta Corp hit a lower circuit of 15 per cent at Rs 149.10, marking a 52-week low on the National Stock Exchange (NSE), following a tax notice of Rs 16,822 crore received last Friday.
Among Sensex firms, Bajaj Finance was the top gainer with a jump of 4.64 per cent, followed by Bajaj Finserv, Kotak Mahindra Bank, Asian Paints, UltraTech Cement, ICICI Bank, NTPC, JSW Steel and Tata Steel. Infosys (NS:INFY), Mahindra & Mahindra, Wipro (NYSE:WIT), Tata Consultancy Services (NS:TCS), IndusInd Bank and HCL Technologies were among the major laggards.
Vinod Nair, Head of Research at Geojit Financial Services, commented on the market's performance, stating that investors were repositioning, shifting focus from stocks tied to the global economy to those focusing on the domestic economy. He also noted concerns over a potential global economic slowdown due to a prolonged period of high-interest rates.
Analysts also pointed out that India’s inclusion in JP Morgan’s Emerging Markets Government Bond Index is benefiting the financial sector in anticipation of a reduction in funding cost. Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,326.74 crore on Friday, continuing their selling spree that has seen over Rs 10,000 crore pulled out from Indian equities in the first three weeks of September.
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