A fag-end buying helped domestic markets stage turnaround in Tuesday’s trade, after the Economic Survey 2022-23 projected 6.5 per cent GDP growth in FY24. Moreover, traders also remain watchful of the Union Budget 2023 due on Wednesday, February 1, and the US Federal Reserve’s interest rate stance.
Benchmark indices Nifty50 closed at 17,662 levels, up 13 points or 0.07 per cent, while the S&P BSE Sensex closed at 59,549 levels, up 50 points or 0.08 per cent. Both Nifty50 and the S&P BSE Sensex hit day’s low of 17,537, and 59,104, respectively. However, later, Nifty50 recouped over 50 points to hit day’s high of 17,735 levels, and the S&P BSE Sensex recovered over 250 points to scale day’s high of 59,787 levels.
Broader markets, too, remained upbeat throughout the day as Nifty MidCap 100 and Nifty SmallCap 100 indices outperformed benchmark indices to close up to 2 per cent.
Besides, sectors like the Nifty PSU Bank, and Nifty Media indices displayed strong performance, as they climbed up to 4 per cent. On the flipside, Nifty IT and Nifty Pharma indices were the worst hit as they dropped up to 1 per cent.
Adani FPO fully subscribed
On the final day, Adani Enterprises’ follow-on-public offer (FPO) was fully subscribed, led by non-institutional investors (3.2x), qualified institutional buyers (1.2x), and retail investors (0.1x).
Vinod Nair, Head of Research at Geojit Financial Services, said: “The Indian market has been underperforming compared to the rest of the world because it has been trading at premium valuations, which are in contrast to the moderation forecasted in the domestic economy for FY24. The premiumization has tapered, currently trading in-line with developed markets like the US; however, we continue to trade at a premium to other emerging markets. The Adani saga has prolonged the correction as FII selling has increased. Now the focus is on the outcome of budget and Fed policy, on which the market has a mixed view.”
Global Cues
Tokyo stocks opened slightly higher on Tuesday led by a weak yen after Wall Street finished lower due to investor caution ahead of key central bank announcements.The benchmark Nikkei 225 index was up 0.06 percent, or 15.78 points, at 27,449.18 in early trade, while the broader Topix index added 0.30 percent, or 5.95 points, to 1,988.35.
Asian shares traded cautiously and bonds nursed small losses on Tuesday as investors braced for an eventful week that includes central bank meetings, a slew of earnings reports and key U.S. economic data.
Overnight, the US markets declined up to 2 per cent ahead of the US Fed meeting, which begins later tonight, and big corporate earnings.
Read all the Latest Business News here
Comments
0 comment