Adversitement
Indian Stock Market Set for Stable Opening Amid Profit-Booking and Mutual Fund Stress Test Awaited
Published On : 2024-03-14T09:14:56+0530 [ IST ] |
Author : Mayur_Tembhare
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The Indian stock market is anticipated to open with minimal changes on Thursday, following profit-booking activities in the previous session, with a particular focus on small- and stocks" target="_blank">mid-cap stocks ahead of the release of mutual fund stress test results. The GIFT Nifty, trading at 22,078, suggests that the Nifty 50 will open around Wednesday's closing level of 21,997.70.
In the recent trading session, the Nifty 50 and Sensex, major blue-chip indexes, experienced their most significant decline in nearly two months, primarily due to profit-booking activities near record levels. Additionally, the small- and mid-cap segments, which are more domestically focused, witnessed substantial declines of 5.28% and 4.4%, respectively, marking their worst session in two years. These indices have retreated 14.4% and 7.7%, respectively, from their record highs reached on February 8.
The decline in small- and stocks" target="_blank">mid-cap stocks follows concerns raised by India's markets regulator regarding significant inflows into funds focusing on these segments. Investors are closely monitoring the outcomes of stress tests conducted by mutual funds, expected to be disclosed by Friday. These results will provide insights into the resilience of small- and mid-cap fund schemes against sudden redemption pressures during stress situations.
Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, attributed the profit-booking to ongoing scrutiny from the Securities and Exchange Board of India (SEBI) and the pending outcomes of mutual fund stress tests.
In addition to market dynamics, investors are eagerly awaiting India's wholesale price index (WPI) inflation data scheduled for release at 12 p.m. IST. Meanwhile, foreign portfolio investors (FPIs) sold Indian shares worth Rs 4,595 crore ($555 million) on a net basis on Wednesday, while domestic investors" target="_blank">institutional investors (DIIs) bought stocks worth Rs 9,094 crore.
The sentiment in Asian markets remains subdued at the opening, reflecting cautious investor sentiment. On Wall Street, most equities declined overnight, as investors awaited US producer price index data, scheduled for release after the closing bell.
Overall, the Indian stock market is navigating through a period of volatility, with investors closely monitoring various economic indicators and market developments to gauge future trends and investment opportunities.
Source : Business Line
Tags : Wall Street equities. , mid-cap stocks , Indian stock market , Foreign Portfolio Investors , domestic institutional investors , Asian markets , small-cap stocks , profit-booking , regulator scrutiny , mutual fund stress test , Nifty 50 , inflation data ,
Summary : The Indian stock market is poised to open with little change following profit-booking in the previous session, with attention turning to small- and stocks" target="_blank">mid-cap stocks ahead of mutual fund stress test results. The Nifty 50 is expected to open near Wednesday's close, with broader small- and mid-cap indices experiencing significant declines. Investors are cautious amid scrutiny from regulators and pending mutual fund stress test outcomes, while awaiting India's wholesale price index (WPI) inflation data. Meanwhile, Asian markets show muted sentiment, and Wall Street equities declined ahead of US producer price index data.
Adversitement