An Indian stock market traders got a mixed day session, where NIFTY 50 and Sensex traded both Higher & Lower in the day. A broad range driver such as global economic signals, domestic economic data & all the running corporate earnings reports affected the market’s behavior.
After the start with a little bit of cautious euphoria (as few sectors surged well, most notably IT and pharma amongst them). First of its kind almost boosted by strong earnings out of some big players in those sectors, which only served to strengthen investor confidence. But profit taking at levels knocked back the intraday sentiment to some extent resulting into a range.
Variations in sectoral performance. Many IT counters continued their uptrend on back of nice quarter results, pharmaceuticals rallied in the face of drug trial success and moderate demand. On the other hand, financials like bank and financial sector slipped with concerns over asset quality in addition to anticipated regulatory changes dimming investor sentiment. The auto Performance was episodic in nature influenced amid sales swings and supply chain hurdles.
Selective buying for mid-cap and small-cap stocks as investors were focusing on fundamentally strong companies. But the overal market sentiment continued to sit at the edge, very much citing risk-off sentiment due in part to global economic worries and the fear of more interest rate increases.
Previous Today’s markets are driven by some of these key factors.
GLOBAL: US and European markets were still clearly very relevant by setting global economic cues.
Economic Data Concerns: With respect, investor attention was caught by the possibility of upcoming economic downshifting and monetary policy decisions.
Corporate Earnings: Earnings season continued to be a key market-moving item as markets prices were reflecting materially on specific to company results.
FII Activity: The market direction was clearly taken via the FII flows which essentially emanated from global investor sentiment With many analysts predicting a consolidation phase where investors decided to watch rather than make the market moves.
The short term volatility is going to remain on the back of global uncertainties and domestic economic data releases. The appetite for longer term outperformance in the Indian market has remained buoyed by fundamentals and policy reforms to come. Caution advised: pick strong fundamentals, and invest broadly.
