In Tuesday's trading session, benchmark equity indices in India concluded on a positive trajectory, though with marginal gains. The NSE Nifty 50 edged up by a mere 3.05 points or 0.01% to settle at 22,335.70, while the BSE Sensex surged 165.32 points or 0.22% to reach 73,667.96. The day witnessed a mixed performance among broader indices, with large-cap stocks leading the gainers.
While the Bank Nifty index saw a dip, closing lower by 45.45 points or 0.10% at 47,282.40. Notably, the Information Technology (IT) and Financial Services sectors exhibited robust performance, while Realty and PSU Banks stocks experienced declines.
Vinod Nair, Head of Research at Geojit Financial Services, noted the day's trading as marked by range-bound movements following a session of significant profit booking. He highlighted concerns regarding inflated valuations particularly impacting mid and small-cap stocks, which remained under pressure throughout the trading day. Small-cap stocks endured a 2% decline, while mid-cap stocks witnessed a 1.4% dip.
CEO of Rowan Capital Services, Yogesh Nagaonkar, emphasized the favorable performance of large-cap stocks, contrasting it with the struggles faced by small and mid caps due to regulatory concerns over high valuations. Since the Securities and Exchange Board of India (SEBI) called for enhanced disclosures on February 27, small-cap stocks have observed a decline of about 7%, and mid-cap stocks have dipped by approximately 2%, in contrast to the 0.6% rise in the Nifty 50 index.
The Information Technology sector registered a gain of 0.64% in anticipation of crucial US inflation data, with potential implications for the Federal Reserve's interest rate decisions. Conversely, state-owned banks saw a notable decrease of 2.57%, reflecting apprehensions surrounding near-term earnings. Realty stocks experienced a sharp downturn of 3.7%, marking their most significant decline in seven weeks.
Nevertheless, despite the day's setbacks, realty and state-owned banks have exhibited notable outperformance compared to the broader benchmarks in 2024, with gains of 11.5% and 23.20% respectively.
In the global arena, Japan's Nikkei 225 and the Shanghai Composite index faced losses, while Hong Kong's Hang Seng surged by 3.1%, and South Korea's Kospi rose by 0.8%. European markets displayed positive momentum during mid-session deals. Meanwhile, the US markets concluded Monday's session with a mixed performance.
Foreign Institutional Investors (FIIs) showed interest in Indian equities, with data indicating purchases worth Rs 4,212.76 crore on Monday. In the previous session, the BSE benchmark index and the Nifty witnessed declines, with the BSE index slipping by 616.75 points or 0.83% to settle at 73,502.64, and the Nifty slumping by 160.90 points or 0.72% to close at 22,332.65.
On the global front, the benchmark Brent crude oil exhibited a slight uptick of 0.35%, reaching $82.50 per barrel.
Follow us
