Mkts slide after fresh record highs
The National Stock Exchange (NSE) benchmark Nifty rose for the second day — underpinned by gains in index heavyweights — to hit fresh record highs on an intraday basis but came off from the day’s highs to end the trading session with losses.
The 50-share blue chip index hit an all-time high of 22,782.30, surpassing its previous record of 22,775.70 seen on April 10. The Sensex hit a high of 75,110, falling 15 points short of a new record.
The Nifty closed at 22,605, with a decline of 38 points or 0.2 per cent, while the Sensex ended at 74,483, down 188 points or 0.25 per cent.
Market players said weak opening in the European markets, profit taking in banking stocks after a sharp up move and caution ahead of the Federal Reserve’s (Fed’s) rate decision on Wednesday triggered a fall from the day’s high. The India Vix index rose 5.2 per cent to 12.9 amid the sharp gyrations in the market.
Investors are concerned that the Fed may stick to its hawkish messaging. Analysts expect Fed Chair Jerome Powell to bolster expectations about interest rates staying higher for longer.
The Sensex and Nifty managed to eke out a gain of a little over 1 per cent in April. The highlight of the month was the sharp rebound in smallcaps.
The Nifty Smallcap 100 index jumped 11.4 per cent, its biggest monthly advance since November 2023. The Nifty Midcap 100 index gained 5.8 per cent during the month, the highest growth since December 2023.
Meanwhile, Brent crude was trading at $87 per barrel amid discussions about a possible ceasefire in West Asia.
Going forward, investors will focus on macro data from the US and Europe. These include the global manufacturing purchasing managers index (PMI), US employment nonfarm payrolls, and statements from monetary policy officials before the Fed’s announcement.
“Overall, we expect the market to continue its positive momentum, supported by healthy flows from domestic institutions and retail investors,” said Siddhartha Khemka, head of retail research of Motilal Oswal Financial Services.