Diwali Market Balances on Tightrope as Bulls and Bears Clash
On Diwali, Indian markets opened virtually flat amid a tug-of-war between bulls and bears. Experts suggest fiscal and monetary measures are crucial for growth. While Nifty IT declined, Cipla surged over 8 percent. Foreign investors continued selling, further exacerbating market challenges.
- Country:
- India
In a delicate balancing act on Diwali, Indian markets opened the day with negligible fluctuations, caught in a tug-of-war between bullish and bearish forces. The Nifty index showed a minor slip, trading at 24,326.75, down by 0.06 percent, while the BSE Sensex dropped fractionally, marking a 0.10 percent decline to settle at 79,859.62 points. Market experts have highlighted the urgent need for both fiscal and monetary interventions to spur economic growth.
As India steps into Samvat 2081, there is a prevailing consensus that the markets may face challenges and likely regress to typical levels, suggesting a subpar year ahead. Ajay Bagga, a Banking and Market Expert, noted, "This festive season is crucial for India's annual consumption figures, with an expected relief from slowing growth provided by 35 lakh marriages and approximately Rs 4.5 lakh crores in private consumer spending." He emphasized the necessity for counter-cyclical measures to tackle tepid aggregate demand.
Sectoral indices showcased a mixed performance on the National Stock Exchange; Nifty Bank saw a slight uptick while Nifty Auto, FMCG, Media, and Metal sectors experienced pressure. Notably, the Nifty IT sector plunged more than 1.5 percent. Cipla emerged as a star performer, surging over 8 percent within the Nifty 50. Conversely, Infosys, TCS, and Tech Mahindra were among the IT sector's top losers. Meanwhile, foreign institutional investors continued their selling spree, offloading stocks worth Rs 4,613.65 crore, adding to the market's woes. Akshay Chinchalkar, Head of Research at Axis Securities, indicated that holding the Tweezer bottom near the 24,130 mark and pushing past 24,500 might signal a bullish recovery.
Across the Asian markets, Japan's Nikkei 225 experienced a marginal decline of 0.4 percent, and South Korea's KOSPI index dipped by 0.75 percent, whereas Hong Kong's Hang Seng climbed 0.79 percent. In the United States, Wall Street saw declines with the S&P 500 down by 0.33 percent and the Nasdaq by 0.56 percent on Wednesday. (ANI)
(With inputs from agencies.)