New Delhi [India], August 27 (ANI): In a volatile trade, Indian stock indices – Sensex and Nifty – closed Tuesday’s session largely on a steady note. The indices started the day flat and later oscillated between red and green, but closed with marginal gains.
Sensex closed at 81,711.76 points, up just 14 points, while Nifty closed at 25,017.75 points, up just 7.15 points, from their previous closing.
The indices are slowly inching toward fresh lifetime highs, after a mild correction lately, due to profit booking and risk-averse sell-off by foreign portfolio investors.
However, FPIs have again started to buy in India, giving a fresh shot in the arm to the indices, since it was almost clear that the US Fed would start cutting interest rates in September.
At the closely watched Jackson Hole annual symposium, US Federal Reserve Chair Jerome Powell expressed further confidence in imminent policy easing. Powell indicated that it might be time for the US central bank to reduce interest rates as inflation is aligning with the target.
“The domestic market witnessed profit-booking near record highs. While the positive expectations regarding a potential rate cut by the Fed in September remain, the recent geopolitical tensions and rising crude oil prices have made investors cautious amid high valuations,” said Vinod Nair, Head of Research, Geojit Financial Services.
IT and financial stocks continued to perform well, whereas FMCG and metal stocks saw declines.
“Further, the recent shift in FII stance towards the domestic market and the anticipation that the RBI will align with the Fed’s actions are expected to foster a positive outlook in the near term,” Nair added.
For fresh cues going ahead, stock market investors would await Q1 GDP data. The first quarter GDP data for India is scheduled for release on Friday.
The Indian economy is expected to grow at 7.0-7.1 per cent in the April-June period, the first quarter of 2024-25, according to a report by SBI Research, released just days before the government is set to publish the official data. However, this growth forecast comes with a downward bias.
The Reserve Bank of India, in its latest monetary policy meeting, projected GDP growth for 2024-25 at 7.2 per cent, with growth for Q1 expected at 7.1 per cent, Q2 at 7.2 per cent, Q3 at 7.3 per cent, and Q4 at 7.2 per cent.
Many global rating agencies and multilateral organisations have also revised their growth forecasts for India upwards. (ANI)
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