Mumbai (Maharashtra) [India], July 19 (ANI): The stock market opened on a bearish note, reflecting global caution amidst weak market cues on Friday.
The benchmark indices Sensex and Nifty both started the day in the red. The Sensex opened 83.92 points down at 81,269.85, while the Nifty began trading 47.60 points lower at 24,753.25.
The market sentiment was largely affected by international factors, with investors showing restraint due to global risk concerns. Out of the 50 companies listed on the Nifty, 13 witnessed advances, whereas 37 faced declines.
Among the top gainers in the Nifty were major companies such as Infosys, Asian Paints, ITC, HCL Technologies, and TCS.
Infosys announced on Thursday that its consolidated net profit for the April-June 2024 quarter increased by 7.1 percent year-over-year to Rs 6,368 crore, compared to Rs 5,945 crore in the same period of 2023. The IT services company’s revenues for the quarter rose by 3.6 percent, reaching Rs 39,315 crore from Rs 37,933 crore.
These firms managed to hold their ground despite the overall market downturn. Conversely, the biggest losers included Hindalco, UltraTech Cement, BPCL, Eicher Motors, and Tata Steel, which saw significant drops in their stock prices.
Although the market opened in the negative, Jio’s subscribers and average revenue per user (ARPU) have increased. Reliance Industries Limited (RIL) is set to announce its Q1 results for FY 2024-25 on Friday.
Ajay Bagga, banking and market expert, said, “With strong FII buying Indian markets made yet another all time high yesterday, despite the global headwinds that are enveloping global risk sentiment. With the Union Budget 2 trading days away, it is best to remain on the sidelines and to let this major event pass by.”
He further added, “If there is a slippage on fiscal deficit levels or any tinkering with capital gains tax on equities, there could be a huge sell off in the markets. The higher probability is of a non event, with continued pragmatic, infrastructure building and growth oriented policies but with more spending on rural, jobs, youth and welfare oriented schemes. Best to wait till the Budget is done and analysed before making further moves in these all time high markets.”
Yesterday, the Indian markets achieved an all-time high, buoyed by strong Foreign Institutional Investors (FII) buying, even as global headwinds posed a threat to market stability.
The recent high has left investors cautious ahead of the Union Budget, which is just two trading days away. Market analysts recommend a wait-and-see approach until the budget details are fully disclosed and assessed.
There is speculation that any slippage in fiscal deficit levels or adjustments to the capital gains tax on equities could trigger a substantial sell-off.
However, the more likely scenario is expected to be a pragmatic budget focused on infrastructure development and growth-oriented policies, with increased spending on rural development, job creation, youth initiatives, and welfare schemes.
Given the market’s current all-time high status, experts advise investors to remain on the sidelines and avoid making any significant moves until the budget is announced and thoroughly analyzed.
This cautious approach is aimed at navigating the potential volatility that major fiscal events can bring to the stock market.
As the global market cues remain weak and the Union Budget looms, investors are keenly watching the developments to gauge their impact on the market’s direction in the coming days. (ANI)
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