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  • Will Nifty50 cross 23,000 next week? Key market factors to watch as recovery picks up steam – The Times of India

    Will Nifty50 cross 23,000 next week? Key market factors to watch as recovery picks up steam – The Times of India


    After a small recovery last week, the Indian equity market is brimming with anticipation as it looks to sustain its upward momentum. The Nifty 50 broke a three-week losing streak, closing nearly 2% higher despite global uncertainties, including the looming threat of trade wars. The rebound was fuelled by positive macroeconomic indicators, a drop in the dollar index, and liquidity support from the Reserve Bank of India (RBI).
    As investors prepare for a shortened trading week due to the Holi festival holiday, several key factors could influence whether the Nifty 50 can break through the crucial 23,000 mark. With global market dynamics in play—from foreign institutional investor activity to crude oil prices and bond yields—next week could be pivotal for the index. Here’s a closer look at what could shape the market’s direction.
    Sectors such as metals, capital goods, and energy outperformed, supported by optimism around China’s stimulus measures and lower crude oil prices. The fall in the dollar index also provided a boost to investor sentiment towards emerging markets, while US equity markets have been facing declines due to uncertainty surrounding Trump’s economic policies, according to Vinod Nair, Head of Research at Geojit Financial Services.
    This week is likely to be a truncated one as markets will remain closed on Friday for the Holi festival holiday. The shorter week could lead to increased volatility as traders adjust their positions ahead of the break, as per ET report. Investors will be keeping an eye on several key factors that may influence the direction of the market:
    FII activity
    Foreign investors have sold equities worth nearly Rs 25,000 crore so far in March, taking the total equity selling in 2025 to Rs 137,354 crore. There’s also significant buying in Chinese stocks, driven by attractive valuations and expectations from recent positive government initiatives in China. The rally in Chinese stocks has propelled the Hang Seng Index to a YTD return of 23.48%, compared to the Nifty’s -5% return. However, experts, including VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believe this is likely a short-term cyclical trade as Chinese corporate earnings have been disappointing for years.
    If foreign investors increase selling pressure, it could weigh on sentiment, but any inflows could continue the positive momentum seen last week.
    Dollar index
    The recent decline in the dollar index to 104 is viewed as a positive sign for emerging markets like India. A weaker dollar typically supports risk assets and boosts foreign inflows into equities, making it an important factor for the Indian market in the coming week.
    Bond yields
    US 10-year Treasury yields have dropped to 4.2%, providing relief to global equities. Lower bond yields reduce the appeal of fixed-income assets compared to stocks, which could encourage more risk-taking in equity markets.
    Crude oil prices
    Brent crude oil prices hit a six-month low following OPEC+’s decision to increase production and persistent concerns about growth in the US. A decline in crude oil prices is beneficial for India, a major oil importer, as it helps curb inflation and improve corporate profit margins, especially for energy-intensive industries. Brent crude oil prices were down by 3.8% last week, marking their biggest weekly decline since November.
    Macro data and tariff concerns
    Investors will be closely watching both domestic and global macroeconomic data. In India, the release of the Index of Industrial Production (IIP) and Consumer Price Index (CPI) inflation data will provide insights into economic momentum. Moreover, developments related to US inflation, non-farm payroll data, and potential tariff changes could significantly influence global market sentiment.
    Technical indicators
    Technical analysts suggest that Nifty 50 could continue its pullback rally in the coming sessions. “The zone of 22,670-22,700 will act as an immediate hurdle for the index, as it coincides with the 20-day EMA and the 38.2% Fibonacci retracement level from the recent downward move (23,807-21,965). If the index manages to stay above the 22,700 level, we may see the rally extend towards the 23,000 and 23,300 levels in the short term,” said experts from SBI Securities. On the downside, the 22,300-22,250 range is expected to provide support in case of any decline.
    Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.





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  • Stock Market Updates: Sensex Trades Over 200 Points Higher; Nifty Above 23,200 – News18

    Stock Market Updates: Sensex Trades Over 200 Points Higher; Nifty Above 23,200 – News18


    Last Updated:

    Benchmark indices, Nifty50 and Sensex, were seen trading lower in early trade, tracking mixed cues.

    share market today live

    Benchmark indices, Nifty50 and Sensex, opened flat on Thursday, reacting to mixed cues from global markets.

    At 10am, Sensex was up 200.73 points or 0.26 percent at 76,605.72, and the Nifty was up 65 points or 0.28 percent at 23,220.35

    UltraTech Cement and HDFC Bank emerged as the top gainers on the BSE, while HUL and Nestle were the biggest laggards. Similarly, on the NSE, UltraTech Cement and Wipro led the gains, while HUL and Nestle saw losses.

    The broader markets showed mixed trends. The Nifty SmallCap index dropped 0.17%, while the MidCap index traded 0.14% lower.

    Sector-wise, the Nifty IT index was the top performer, up 1%, while the Nifty FMCG index was the biggest loser, down 1%.

    Akshay Chinchalkar, Head of Research, Axis Securities, said: “The Nifty’s recovery traced a “tweezer bottom” formation alongside a “bullish harami” pattern that should provide some comfort to people looking for a lasting bounce. The long lower shadow from yesterday’s lows shows demand near the 23,000 area. Although longer-term support lies in the 22500 – 22700 zone, it’s critical for bulls to get past 23471. The NSE midcap index has reached a pivotal support cluster near 52,000 so the burden of proof is on bulls to protect the lows.

    Global Cues

    Asian markets traded mixed on Thursday as investors reacted to various economic data from the region. In Australia, the ASX 200 fell 0.42%, while Japan’s Nikkei rose 0.5%, and the Topix gained 0.42%. South Korea’s Kospi dropped 0.96%, following a report showing the country’s economy grew by just 1.2% YoY in Q4, its slowest pace since Q2 2023. However, Hong Kong’s Hang Seng index climbed 0.75%, and China’s CSI 300 rose 1% at the open.

    In Singapore, inflation data for December is expected soon, and the Bank of Japan is holding a policy meeting today and tomorrow, with Governor Kazuo Ueda hinting at a potential rate hike.

    Overnight, the US stock market saw strong performance, with the S&P 500 hitting a fresh all-time high. The index rose 0.61%, reaching an intraday record of 6,100.81 before closing slightly lower at 6,086.37. The Nasdaq Composite surged 1.28% to 20,009.34, driven by gains in tech stocks like Oracle and Nvidia, fueled by optimism around artificial intelligence (AI). The Dow Jones Industrial Average also saw a modest gain, rising 130.92 points, or 0.3%, to close at 44,156.73.

    Investors are now awaiting US Jobless claims data for the week ending January 18.

    News business » markets Stock Market Updates: Sensex Trades Over 200 Points Higher; Nifty Above 23,200



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  • ‘Buy’ calls are slowly vanishing from India’s booming stock market – Times of India

    ‘Buy’ calls are slowly vanishing from India’s booming stock market – Times of India


    Indian stocks have been hitting successive records.

    Analysts are having a hard time recommending stocks worth buying in India’s $5 trillion equity market.
    The number of stocks on the NSE Nifty 200 index with a consensus ‘buy’ rating totaled 61 as of Tuesday, the lowest in at least a decade, data analyzed by Bloomberg show. LIC Housing Finance Ltd, Sun TV Network Ltd and Dr. Lal PathLabs Ltd are among stocks that saw multiple downgrades this quarter, putting their average analyst rating at ‘hold’.
    A dimmer outlook for corporate earnings in one of the world’s most expensive stock markets is making analysts skeptical of further gains in some of the shares that drove a years-long rally in Indian equities, now in its ninth year.
    “Many stocks have now become obscenely expensive,” said Sahil Kapoor, a strategist at DSP Mutual Fund. Analysts are rolling forward their earnings estimates as sales growth is weak and margins are already at their peak, he said.
    Buy Ratings are Vanishing in India’s Heated Market | Consensus rating for stocks within Nifty 200 Index
    The Nifty 200 index is valued at about 24 times its 12-month forward earnings estimates, versus last decade’s mean of about 19 times. Corporate profits, which partly drove the valuation multiples, are set to slow. Kotak Institutional Equities estimates earnings for the benchmark Nifty 50 firms to grow at 8.4% in the current fiscal year ending March 2025, against 20% last year.
    Indian stocks have been hitting successive records, with both domestic and overseas investors betting on the nation’s rapid economic expansion. A risk-on sentiment in global markets following the Federal Reserve’s jumbo rate cut last week sent Nifty to a fresh peak on Tuesday.
    While market watchers debate whether the recent returns can be sustained, an investment shift appears to be underway. Some investors are moving to larger stocks, where valuations seem reasonable, while others are rotating funds to sectors like financials, which have trailed the broader market rally.
    As analysts revise their calls, more than two-third of the Nifty 200 stocks now carry a ‘hold’ recommendation, compared to an almost equal split between buy and hold a decade ago. The shift reflects a more cautious stance, even as India remains a bright spot globally despite concerns around expensive valuations. Notably, only five of the 196 stocks under review have a sell rating, little changed from 2015.
    “India being a growth market, analysts would try to have a buy or hold rating rather than a sell,” said Kapoor.
    Methodology: The study rates each analyst’s rating on a scale of five (buy) to one (sell) to find the average consensus rating. If the value is equal to or above four, the stock is counted a consensus buy, while an average rating of two or below considers it a consensus sell. Those falling in the middle are taken as a hold.





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  • Stock market today: Sensex, Nifty trade lower in opening session – Times of India

    Stock market today: Sensex, Nifty trade lower in opening session – Times of India



    NEW DELHI: Equity benchmark indices, BSE Sensex and Nifty50 were trading lower in the opening session on Thursday. Sensex drops 264.7 points to 72,497.19 in the early trade and Nifty was down 80.2 points to 21,917.50.
    Both the Indian benchmark stock indices tanked over in trade on Wednesday. BSE Sensex, India’s benchmark stock index, experienced a drop of 1,100 points, falling below the 73,000 level, while Nifty50 saw a decline below the 22,000 mark.
    Sensex closed the day at 72,761.89, down over 900 points or 1.23%, and Nifty50 ended the trading day at 21,997.70, down over 330 points or 1.51%.
    The smallcap index recorded a 5% decline, marking its worst single-day fall since December 2022. Midcaps lost 4%, while microcaps and SME stock indices saw a drop of around 6% each.
    Wednesday was the worst day for investors since Covid in terms of wealth erosion. At close of session, BSE’s market cap was at Rs 378.7 lakh crore.
    The day’s selloff erased Rs 13.9 lakh crore worth of investors’ wealth in terms of loss in BSE’s market capitalisation.
    When the Sensex recorded the second biggest loss in market capitalisation, Adani stocks witnessed the group’s biggest single-session wealth erosion of Rs 1.1 lakh crore.





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  • Sensex rises by 354 pts, Nifty closes above 19,500 in Mahurat session – Times of India

    Sensex rises by 354 pts, Nifty closes above 19,500 in Mahurat session – Times of India



    MUMBAI: Benchmark stock indices Sensex and Nifty closed higher by more than half a per cent in the special Mahurat trading session on Sunday driven by across-the-board buying by investors. The 30-share BSE Sensex rose by 354.77 points or 0.55 per cent to close at 65,259.45 with 28 of its components settling in the green on the first trading session of Samvat 2080.
    The broader Nifty50 of the National Stock Exchange advanced 100.20 points or 0.52 per cent to settle at 19,525.55 led by gains in IT, infra and energy shares. As many as 43 Nifty50 stocks ended in green while seven in red.
    Muhurat trading is a one-hour, symbolic trading session conducted by Indian stock exchanges on Diwali, a Hindu festival considered auspicious for new beginnings, including investments.
    Buyers flooded Dalal Street on the special occasion of Diwali, propelling benchmark indices higher despite the lower volume, marking a strong start to Samvat Year 2080.
    Investors’ wealth soared by over Rs 2 lakh crore, as reflected in the total market capitalization of BSE-listed companies.
    During the Samvat year 2079 ended on Friday, the BSE Sensex jumped 5,073.02 points or 8.47 per cent, while the Nifty climbed 1,694.6 points or 9.55 per cent.
    Among the Sensex shares, Infosys rose the most by 1.41 per cent, followed by Wipro (0.88 per cent), Asian Paints (0.78 per cent), and TCS (0.77 per cent).
    HDFC Bank, ICICI Bank, Reliance Industries, ITC, Kotak Bank, Asian Paints, NTPC and Titan were among the lead gainers.
    Ultratech Cement and Sun Pharma were the only losers among Sensex firms.
    Broader markets also advanced with the BSE MidCap gaining 0.67 per cent and BSE SmallCap by 1.14 per cent.
    All the sectoral indices closed with gains.
    Foreign Portfolio Investors (FPIs) selling spree continued as they dumped Indian equity worth over Rs 5,800 crore this month so far on rising interest rates and geopolitical tensions in the Middle East.





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  • Auto, energy sectors drag sensex, Nifty; small and mid-caps outperform – Times of India

    Auto, energy sectors drag sensex, Nifty; small and mid-caps outperform – Times of India



    BENGALURU: Indian shares closed lower on Tuesday, dragged by auto stocks on mixed sales data in September, while concerns over elevated interest rates also weighed on sentiment.
    The NSE Nifty 50 index settled 0.56% down at 19,528.75, while the S&P BSE Sensex fell 0.48% to 65,512.10.
    Auto stocks fell 1.20%, dragged by Eicher Motors shedding 2.68%, among the most on the blue-chip Nifty 50, after its September motorcycle sales fell 4%.
    Escorts Kubota, too, lost 1.73% after logging an 11.2% year-on-year decline in tractor sales in the month.
    State-run oil producer ONGC lost 3.78% and dragged the energy index 1.28% lower. The stock had gained 2.5% over the last two sessions.
    Asian equities slid to their lowest in 2023 after hawkish comments from US Federal Reserve Chair Jerome Powell and Vice Chair for Supervision Michael Barr reignited worries of a prolonged high interest rate regime.
    “The risk-off sentiment in the markets has been triggered by the slide in global equities on U.S. rate worries,” said Aishvarya Dadheech, chief investment officer at Fident Asset Management, adding that the “correction in small- and mid-cap space is likely after the recent run-up”.
    Dadheech, however, expected the benchmarks to remain resilient due to the rotation of funds from small- and mid-caps to large-caps.
    Small- and mid-caps rose 0.53% and 0.18% on Tuesday. They have gained 32% and 29%, respectively, in 2023 so far, outperforming an 8% rise in the Nifty 50.
    “While select pockets in domestic equities have become overheated, festive demand and September-quarter earnings are likely to support markets and arrest the selling pressure,” said Saurabh Jain, assistant vice president, research at SMC Global Securities.
    High-weightage financials lost 0.39%. Among individual stocks, Vedanta gained 3.68% after the Indian miner announced a split into six separate businesses.
    HeidelbergCement India jumped 7.04% on a report of acquisition talks by JSW Cement.





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  • Why Sensex, Nifty 50 Are Falling After A Record Run? 7 Key Factors Behind Selloff – News18

    Why Sensex, Nifty 50 Are Falling After A Record Run? 7 Key Factors Behind Selloff – News18


    Stock Market Today: D-Street investors faced a challenging day as both benchmark indices, the S&P BSE Sensex and NSE Nifty 50, experienced a sharp decline during early trading hours. The S&P BSE Sensex dropped to a low of 66,149, and was down around 650 points. The NSE Nifty50 was seen testing the 19,700 level.

    The 30-share index has slipped from 67,838 to 66,219, losing over 1,600 points in the last three sessions of this truncated week. Other key indices Nifty 50 and Bank Nifty have also witnessed selling pressure this week. Nifty lost over 450 points in the last three sessions, while Bank Nifty dropped around 1,200 points during this time.

    According to stock market experts, FIIs turning sellers, the US dollar gaining strength, the US Fed’s hawkish rate stance, and rising crude oil prices have contributed to the negative sentiment in Indian stock market. as the majority of the Indian indices were either at record highs or near their lifetime highs. Equity markets that had hit new highs in a recent rally also witnessed profit booking amid limited upside.

    “Due to the rise in crude oil prices in the international market in recent sessions, the market was expecting inflation pressure on the US Fed leading to rise in speculation of a hawkish US Fed stance, which turned true in its meeting on Wednesday. Hence, expecting a rise in the US dollar, FIIs started fishing out money from assets like equities, gold, etc.,” said Prashanth Tapse, senior vice president — research at Mehta Equities.

    What is the reason behind the loss of momentum in the benchmark indices after their record-breaking run? Key Points

    US Fed’s ‘Hawkish’ stance

    The markets have exhibited heightened volatility in recent sessions, and it appears that the policy outcome of the US Federal Reserve has further dampened the momentum on Dalal Street due to its impact on global markets. While the US Federal Reserve chose to maintain interest rates at their current levels, it adopted a more stringent monetary policy stance to address inflation concerns.

    According to updated quarterly projections released by the US central bank, the Fed’s benchmark overnight interest rate may still see another hike this year, reaching a peak range of 5.50 per cent to 5.75 per cent.

    This tougher stance has had repercussions on stock markets across the globe, including India, where concerns about reduced foreign investments have emerged in case the US Federal Reserve opts for another rate hike.

    Jayden Ong, Senior Market Analyst, APAC at Vantage, commented, “The Federal Reserve has once again opted to maintain the benchmark interest rates within the range of 5.25 per cent to 5.5 per cent. The dot plot chart indicates the Federal Reserve’s inclination towards an additional 25-basis-point interest rate hike in 2023, with an inclination towards sustaining higher interest rates throughout 2024.”

    He added, “This stance is notably more hawkish than previous indications, leading to an appreciative rally in the US dollar index, while exerting notable downward pressure on precious metals and risk assets within relative markets.”

    Ong concluded, “As a result, it is anticipated that risk assets, including the US stock index, will remain under pressure. This, in turn, could have indirect repercussions on the Indian market.”

    Bond yields

    The yield on two-year US Treasury notes rose to a 17-year high of 5.1970%, while the 10-year yield jumped to 4.4310%, a new 16-year peak. Rising bond yields are negative for equity prices. Nasdaq ended 1.5% lower and other Asian markets like those of Japan and China were also trading over 1% lower.

    Dollar index

    The dollar index, which measures the American currency against a basket of rivals, rose as high as 105.59 on Thursday, its strongest since March 9.

    Crude on the rise

    Analysts are projecting that oil rates could touch $100 a barrel mark soon. A stronger dollar typically makes commodities such as oil more expensive for buyers using other currencies.

    Rising US bond yields, stronger USD and elevated energy prices – all are ingredients for a bad recipe for Asian stocks, Nomura analysts say.

    FII selloff

    After splurging money on Indian stocks for six consecutive months, FIIs have been on a selling spree in September. NSDL data shows that FIIs have been net sellers to the tune of Rs 5,213 crore so far in the month.

    Valuations

    Equity markets that had hit new highs in a recent rally also witnessed profit booking amid limited upside.

    Tapse said: Indian stock market indices were already at a record high and were staring at profit booking.

    Technical factors

    Nifty had on Thursday formed a long bear candle with upper shadow on the daily chart and indicated the formation of a short-term top reversal pattern in the index at the swing high of 2022 levels.

    “Going forward, we expect the Nifty to undergo a healthy retracement of three-week rally (19200-20200) wherein key support is placed at 19600. The current decline is expected to result in higher bottom formation around 19600 followed by short-term consolidation.”

    In the meantime, the market capitalisation of all companies listed on BSE has also fallen to Rs 319.5 lakh crore, taking the total investor wealth erosion to Rs 3.9 lakh crore.

    Last night, the US Federal Reserve didn’t opt for an interest rate hike but projected one more 25-basis-point rate hike this year and 50 bps of rate cuts in 2024, versus 100 bps of 2024 cuts in June projections.

    The markets are likely to remain under pressure till they adjust and digest the fact that interest rates are actually not going down in a hurry.

    What Should Investors Do?

    Investors should look out for the key support and resistant levels for indices while placing bets. “Sensex today has crucial support placed at 65,700 to 65,500 levels and it may go up to 68,000 in case of trend reversal. Similarly, Nifty today has major support placed at 19,600 to 19,500 levels and it has hurdle placed at 20,300 levels,” said Sumeet Bagadia, executive director at Choice Broking.

    Bagadia advises ‘buy on dip’s strategy for Indian stock investors. The Bank Nifty chart suggests major support around 44,500 to 44,300 levels whereas it may rise to 46,000 to 46,500 in case of stock market’s rebound in near term, he said.

    Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.



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  • Sensex Sinks 700 pts, Nifty Below 19,500; Key Reasons Why Market Is Falling Today – News18

    Sensex Sinks 700 pts, Nifty Below 19,500; Key Reasons Why Market Is Falling Today – News18


    Equity benchmark indices fell in early trade on Wednesday in tandem with weak trends in global markets ahead of the US Federal Reserve’s interest rate decision. The BSE Sensex tanked 700 points or 1 per cent to below 67,000 level. It touched the day’s low of 66,887.99. Meanwhile, Nifty50 dipped to 19,936, down 0.98 per cent or 198 points. The market capitalisation of all listed companies on BSE declined by Rs 1.92 lakh crore to Rs 321.08 lakh crore.

    Parth Nyati, Founder at Tradingo, said: “Today, both Nifty and Sensex experienced profit booking, largely attributed to a sharp sell-off in HDFC Bank following its analyst meeting. During the meeting, concerns were raised about potential margin pressure and the asset quality post-merger of HDFC twins. Additionally, global markets exhibited caution in anticipation of the upcoming FOMC meeting. Factors such as increasing US bond yields, rupee weakness, a surge in crude oil prices, and selling by foreign institutional investors (FIIs) further contributed to the challenges faced by our markets.”

    From the Sensex pack, HDFC Bank, RIL, JSW Steel, Maruti and UltraTech Cement were the top losers.

    HDFC Bank tanked 3 per cent lower after the bank on Monday said its gross non-performing assets will likely increase as of July 1, after its merger with HDFC.

    Shares of Bharat Dynamics rose 3 per cent higher after the company signed a contract worth Rs 291 crore with IAF.

    Sector-wise, Nifty Financial Services declined 0.87 per cent and Nifty Bank fell 0.68 per cent. FMCG, IT, pharma, realty, and healthcare sectors also opened lower. In the broader market, Nifty Midcap100 gained 0.05 per cent, while Smallcap100 opened flat.

    Here’s what’s driving the Indian stock markets down

    HDFC Shares Sink: HDFC Bank Ltd., India’s largest private lender, saw a decline of over 4 per cent in share prices in Wednesday’s trade after brokerage firms expressed their mixed views on the stock post the bank’s analyst and institutional investor meeting.

    Nishit Master, Portfolio Manager, Axis Securities PMS, said: “HDFC Bank has commented on pressure on margins due to excess liquidity and merger-related costs, which will remain elevated in the short term. This development has led to earnings downgrades for HDFC Bank for FY24, driving the pressure on the stock.”

    US Fed Outcome: Asia-Pacific markets mostly fell on Wednesday as investors stayed on the sidelines ahead of the US Fed’s interest rate decision later tonight.

    The Federal Reserve is widely expected to hold rates steady, but the central bank will give an update on its economic outlook with the summary of economic projections.

    Oil prices: The Brent crude oil price, which topped the $96 per barrel-mark overnight, was hovering around $93 per barrel on Wednesday.

    Analysts at Jefferies believe fiscal pressures for the Indian economy are gradually rising as oil prices, that are close to the $100 a barrel (Brent) mark, may continue to climb ahead of a busy election calendar.

    US Treasury yields: US yields hit a 16-year high ahead of the conclusion of the Federal Reserve’s policy meeting on Wednesday. The benchmark 10-year Treasury yield reached a session high of 4.371 per cent overnight on Tuesday, its highest level since early November 2007.

    The five-year Treasury yield also reached a 16-year high of 4.524 per cent, while the yield on the two-year note hit a two-month high of 5.114 per cent.

    Technical Outlook: From a technical perspective, Nifty and Sensex have identifiable immediate support levels at 19,900 and 66,900, respectively. If these levels are breached, we may witness additional profit booking, potentially leading towards 19,640 for Nifty and 66,000 for Sensex.

    What Should Investors Do Now?

    Master said: “We remain constructive on the markets and believe that if one has a 3 to 5-year view, one can continue to invest even at the current elevated levels. Investors looking to increase their equity allocation should spread out their buying over the next three months to benefit from any potential fall in the market.”

    Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.



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  • Nifty down from record highs as small, mid caps stocks tumble – Times of India

    Nifty down from record highs as small, mid caps stocks tumble – Times of India



    On Tuesday, both of India’s key stock indices, Nifty and Sensex, initially made gains but later retreated, primarily driven by declines in energy, metals, and automobile stocks.
    In the early part of the trading session, both indices had surged by over 0.5% each, with the Nifty achieving a new record high for the second consecutive session. However, as selling pressure materialized, Nifty and sensex slid from record highs and are trading lower.
    The fall in indices were larges led by small-caps and mid-caps. While small-caps fell over 4%, mid-caps were down over 2.5%.
    So far in 2023, the small-cap index has surged by 33.5%, and mid-cap stocks have seen a remarkable increase of 31.2%, in contrast to the Nifty 50‘s modest gain of 10%.
    “The growing attraction towards small-cap and mid-cap equity mutual funds follows a significant downturn in the broader markets over the past two years, supported by robust macroeconomic fundamentals,” NS Venkatesh, chief executive of AMFI, told Reuters.
    The influx of retail investment has resulted in small-cap and mid-cap stocks outperforming the benchmarks significantly this year, posting impressive gains of 33.41% and 31.53%, respectively.
    Nevertheless, analysts have issued a word of caution, suggesting that the exceptional performance in the mid-cap and small-cap sectors is not necessarily rooted in solid fundamentals for most companies.
    “The primary force behind the surge in small- and mid-cap stocks seems to be an irrational exuberance among investors who have lofty return expectations,” analysts at Kotak Institutional Equities said in a report on Monday.
    (With inputs from agencies)





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