Today, most of the market indices have been trading flat since the opening. Both the Nifty 50 and Sensex index opened with around a 0.10% dip from the previous day’s closing. Even the broader market indices have been plunging owing to mixed sentiments in the market and other global events. The volatility index is, however, negative 1.02% as of 11.50 am suggesting a flat market today. So, what made the market sluggish today? Let’s find out.
Key Triggers for the Market
The market is sluggish today but the equity indices dipped marginally and even the volatility is low all this is because of mixed market sentiments triggered by five years of low inflation data and the slowest industrial output growth since January.
India’s retail inflation for July has decreased to 3.5% even lower than the RBI’s target retail inflation rate of 4%, and the market was about to rejoice in this. However, the release of industrial output growth which has slowed down significantly and has been growing at the slowest pace since the beginning of this year has left the market in a dilemma.
Sectoral Performances of the Day
Coming to the sectoral performance of the day, more or less, all the sectoral indices are flat today, except for the consumer durables sector, which is witnessing some positive sentiments as the Nifty Consumer Durables Index has gone up around 1.8% since the beginning of the day until noon. On the other hand, financial services have been dragging the market since the start. The Nifty financial services index has dipped 0.85% until noon today.
Stocks Dragging the Market
Talking about the nifty financial services index, HDFC Bank has been one of the prime stocks that has been pulling the market down today. This stock has dipped over 3% since the opening of the market today. Another HDFC stock that is HDFC Life has also added fuel to the fire and dipped around 1.77% until noon. BPCL and TATA Motors are not behind in dragging the market and both fell 2% and 1.64% respectively until noon today.
On the contrary, Titan has been the nifty top gainer until noon, which is from the consumer durable sector, followed by Apollo Hospital, which has gained around 1.82% until noon.
Global Market Performance
The US inflation data has been one of the most important triggers for the market this week, which investors are awaiting. Asian market displayed a mixed sentiment, amidst which Nikkei gained around 2% as the market opened.
FII & DII Investments
On 12 August 2024, FIIs sold equity shares worth ₹ 4680.51 crores, which has a negative impact on the market as foreign investors are flying away. However, the domestic institutional investors (DII) came to the rescue and bought shares worth ₹ 4477.73 crores, which exceeded the amount of shares sold by the FIIs. This balanced the market and can be one of the reasons for today’s flat performance as well.
F&O Ban
As the F&O ban continues, here are the stocks that you cannot trade in the F&O space on 13 August –
- Aditya Birla Fashion
- Aditya Birla CapitalÂ
- Bandhan Bank
- Birlasoft
- Biocon
- Hindustan Copper
- Granules India
- India Cement
- LIC Housing Finance
- IndiaMART
- PNB
- SAIL
- Manappuran Finance
- RBL Bank
- Sun TV
Wrapping up
As the market session progresses, the market indices continue to fall further. At around 12.20 pm, the Nifty 50 has dropped by 0.25% while Sensex has gone down by around 0.23%. Investors and traders must keep a close eye on the markets today and analyze all the perspectives before making any investment decision.
Source: MoneyControl NSEIndia
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.