Mumbai: Equity Benchmark Indices Surge Amid Mixed Global Trends
On Wednesday, equity benchmark indices in Mumbai experienced a notable rally as the markets navigated through volatile trading conditions, primarily driven by buying activity in bank stocks. This marks the fourth consecutive day of gains for the markets, with the 30-share BSE Sensex rising by 116.94 points to reach 81,572.34 during early trading. The NSE Nifty also saw an uptick, climbing 33.75 points to 24,891.05.
Among the Sensex constituents, major gainers included NTPC, Asian Paints, JSW Steel, Bharti Airtel, ITC, ICICI Bank, Adani Ports and Special Economic Zone, and Tech Mahindra. Conversely, Power Grid, Tata Motors, IndusInd Bank, Axis Bank, Reliance Industries, and Kotak Mahindra Bank emerged as the notable laggards.
In the broader Asian markets, Shanghai, Hong Kong, and Seoul recorded gains, while Tokyo experienced declines. The US markets closed on a mixed note the previous day, reflecting a cautious global sentiment.
Expectations surrounding a potential rate cut by the US Federal Reserve in September are providing a supportive backdrop for global markets. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “The Fed commentary expected tonight is likely to indicate the possibility of a rate cut in September. Investors should consider taking a long-term perspective and calibrate their expectations to more realistic levels. At this juncture, prioritizing safety in the market is crucial.”
He further warned that pursuing unusually high returns from the broader market could entail significant risks.
Additionally, the global oil benchmark Brent crude saw a rise of 1.49 percent, trading at USD 79.80 per barrel.
Foreign Institutional Investors (FIIs) recorded a substantial outflow of equities worth Rs 5,598.64 crore on Tuesday, according to exchange data.
On the previous trading day, the BSE Sensex had closed higher by 99.56 points, or 0.12 percent, at 81,455.40, marking an all-time closing high. Similarly, the NSE Nifty edged up by 21.20 points, or 0.09 percent, to reach a new all-time closing high of 24,857.30.
