After a bloodbath on Dalal Street yesterday, today, the broad Indian stock market indices opened in green. Both Nifty 50 and Sensex were trading around 1% up from the previous close, and at around 1 pm today, they are retaining a 0.5% rise. The realty sector pulled the market up significantly, followed by the media, metal, oil, and gas sectors. Even the volatility in the market has come down as depicted by the Indi VIX index which dropped close to 10% by the middle of today’s market session.
Asian Markets
- Positive sentiment in the Asian market peers has been the prime reason for the strong market recovery.
- Japan’s yen depreciating against the US Dollar also boosted its global peers. Currently, USD/JPY stands at 144.98.
- Japan’s Nikkei made significant gains today, which other markets such as Taiwan followed. Significant gains came in from the tech sector, especially in the case of Japan’s stock market.
US Markets
- US ISM Services PMI data announced yesterday also helped calm down the market sentiments. It helped cool down the recession fears in the US.
- The treasury yields increased – for 10-year it increased to 3.84% from 1.5% while for the 2-year bonds, it increased to 3.98%.
FIIs & DIIs
On 5 August 2024, the FIIs pulled out ₹ 10073.75 crore from the Indian markets while the domestic institutional investors invested ₹ 9155.55 crore. The surge in domestic demand is another reason to help the market rebound today and move upward.
Sectoral performance
Amongst the top-gaining sectors, there were the real estate sector, media, and metal. The Nifty Realty index gained around 1.68% at 2 pm, while the Nifty Media gained around 1.35% followed by Nifty Metal, which gained around 0.73% today. These sectors added the most to today’s rally in the market.
However, at the close, these sectors also started losing the momentum but didn’t end in red.
The financial services dragged the market down today. All the financial sector indices including private banks, PSU banks, all were in red and down by more than 1% at the end of the session.
Top gainers and losers
Nifty top gainers for the day include Britannia, which gained a whopping 2.81% today, followed by JSW Steel gaining over 2% and Tech Mahindra is the third top gainer gaining close to 1.8%.
On the contrary, HDFC Life fell the most by 4.28% followed by a 2.43% fall in SBI Life’s stock price, and BPCL lost 1.84%.
Broader market indices
The broader market indices such as the Nifty 100 or BSE 100 display a muted performance through the day. They ended up in red with both Nifty 100 and BSE 100 down by 0.41%.
F&O Ban
As of 6 August, the stocks that you won’t be able to trade today in the F&O segment include Birlasoft, Gujarat Narmada Valley Fertilizers & Chemicals, Aditya Birla Capital, Chambal Fertilizers & Chemicals, RBL Bank, India Cements, Hindustan Copper, Granules, and Indiamart Intermesh.
Slowdown at the close
While the market remained positive through the entire day, at the end, it turned red, and volatility spiked. Nifty 50 ended in red with a loss of around 0.26%, while Sensex dropped 0.017%. Financial sector both private and PSU stocks, mainly pulled the market down in the end.
Source: https://www.nseindia.com https://www.business-standard.com
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