Equity Indices Flat Amidst Mixed Global Cues; Market Shows Resilience
Indian equity indices traded flat on Wednesday morning, following negative cues from Asian markets. As of 9:40 a.m., the Sensex was down by 45 points, or 0.05%, at 81,667, while the Nifty declined by 21 points, or 0.10%, to 24,996. The Nifty’s all-time high stands at 25,078.
Despite the muted start, the overall market trend remains positive. On the National Stock Exchange (NSE), 1,470 shares were advancing, while 620 were declining. Midcap and smallcap stocks showed more resilience compared to largecaps. The Nifty Midcap 100 index rose by 108 points, or 0.18%, to 59,316, and the Nifty Smallcap 100 index increased by 93 points to 19,426.
Sectoral indices revealed varied performances: Auto, IT, pharma, FMCG, media, energy, and infrastructure sectors were among the major gainers. Conversely, financial services, metals, and private banking sectors faced significant declines.
In the Sensex pack, notable gainers included Mahindra & Mahindra, Tata Motors, Power Grid, Sun Pharma, Titan, Wipro, Reliance, ITC, UltraTech Cement, Bharti Airtel, and HDFC Bank. Meanwhile, Tata Steel, Bajaj Finserv, Maruti Suzuki, TCS, HCL Tech, and ICICI Bank were among the top losers.
Asian markets were predominantly in the red, with Tokyo, Shanghai, Seoul, and Hong Kong experiencing declines. Conversely, the US market closed with marginal gains on Tuesday.
Market experts suggest that the Indian equity market is in a consolidation phase with low volatility, a trend likely to persist in the near term. The decline in US bond yields has curbed foreign institutional investor (FII) selling and even prompted some marginal buying. Historically, domestic institutional investors (DIIs) tend to sell when FIIs are net buyers, a trend that may keep the market within a range with a slight upward bias. This scenario is viewed as a healthy adjustment given the current elevated market valuations.
Foreign institutional investors extended their buying streak, purchasing equities worth Rs 1,503.76 crore on August 27. In contrast, domestic institutional investors sold equities worth Rs 604.08 crore on the same day.
