Markets Get A Shot In The Arm
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, Market Moves, Market Watch
In a remarkable turn of events, the Indian stock market staged a significant recovery from August 5-16, 2024,
In a remarkable turn of events, the Indian stock market staged a significant recovery from August 5-16, 2024, rebounding from a brutal decline that marked the month’s opening days. The information technology (IT) and realty sectors emerged as the top performers, demonstrating resilience and growth amid challenging market conditions. As of August 16, 2024, the IT sector stands out as the only sector in the green for the month, showcasing its strength and investor confidence.
Except for IT, no other sector has recovered to its July-end closing prices. The IT and realty sectors led the charge, posting impressive gains of 2.26 per cent and 1.13 per cent, respectively, over the past two weeks. The healthcare and FMCG sectors followed closely, each registering a 0.88 per cent increase. On the flip side, the metal and power sectors faced headwinds, with negative returns of -3.33 per cent and -2.84 per cent, respectively.
Notable stock movements within the IT sector included Tech Mahindra, which surged by 5.15 per cent, followed by HCL Tech at 3.66 per cent, and TCS at 3.1 per cent. In the realty sector, DLF saw a 3 per cent rise. Conversely, Hindustan Zinc experienced a sharp decline of over 20 per cent, while Tata Power fell approximately by 10 per cent during the same period. Despite the sectoral bright spots, major indices reported negative returns for the fortnight.
Nifty declined by 0.71 per cent, while the Sensex fell by 0.67 per cent. However, it’s worth noting that the market has rebounded significantly from its low point on August 5. Several factors contributed to this market recovery. The Bank of Japan’s deputy governor’s statement ruling out rate hikes during market instability boosted investor confidence. Additionally, the US CPI inflation dipping to a three-year low of 2.9 per cent, beating market expectations of 3 per cent, provided further support.
Except for IT, no other sector has recovered to its July-end closing prices. The IT and realty sectors led the charge, posting impressive gains of 2.26 per cent and 1.13 per cent, respectively, over the past two weeks.
The absence of escalation in the IranIsrael conflict also helped calm market nerves. A notable trend emerged in institutional investor behaviour over the past two weeks. Domestic institutional investors (DIIs) consistently maintained a net buying position, while foreign institutional investors (FIIs) remained net sellers for most trading sessions.
FIIs sold shares worth ₹27,756 crore in the Indian market, while DIIs countered this selling pressure by injecting a substantial ₹31,431 crore into the market. Interestingly, Mid-Cap stocks outperformed their Large-Cap counterparts during this period. While the Nifty 50 declined by 0.71 per cent, the Nifty Mid-Cap index showed slightly better resilience, dropping by 0.59 per cent.
