6 days ago
Sensex, Nifty End Lower After Choppy Trade Despite Early Gains
The Sensex and Nifty started August 27 slightly higher.
Later, they gave up those gains and finished lower.
This happened after a day of uneven, or choppy, trading.
Cheaper crude oil may help the stock market because prices have fallen by more than 7 percent.
However, many companies are raising money through IPOs.
This could leave less money for buying shares that are already listed.
An expert expects the broader market to move mostly sideways.
Investors may still look for promising small- and mid-cap stocks, while geopolitical concerns could make them cautious.
The Sensex and Nifty opened marginally higher on August 27.
Both indices later surrendered their early gains and ended lower after choppy trading.
Global crude oil prices had corrected by more than 7 percent, potentially supporting markets.
Strong IPO activity was expected to pressure liquidity in secondary markets.
Analysts remained cautious as investors focused on small- and mid-cap stocks amid geopolitical concerns.
- Who
- The Sensex and Nifty, with analysis from G. Chokkalingam, head of research at Equinomics Research.
- What
- The indices opened marginally higher but later ended lower after choppy trading.
- Where
- When
- August 27; the outlook discussed covered the remaining days of that week.
- Why
- Falling crude oil prices could support markets, but strong IPO activity may reduce secondary-market liquidity; geopolitical concerns also contributed to caution.
Factors Supporting Markets
Factors Limiting Gains
Crude oil prices
Factors Supporting Markets
The more than 7 percent correction in global crude oil prices could provide a boost to markets.
Factors Limiting Gains
The potential support from cheaper crude oil did not prevent the indices from ending lower after choppy trading.
Investment opportunities
Factors Supporting Markets
Small- and mid-cap stocks could attract new retail investors because of attractive valuations and distinctive growth or deep-value stories.
Factors Limiting Gains
The overall market outlook remained sideways, with analysts cautious because of geopolitical concerns.
Liquidity
Factors Supporting Markets
Continued participation by new retail investors could support interest in selected stocks.
Factors Limiting Gains
The IPO boom could draw liquidity away from secondary-market trading and limit broader market gains.
Key facts
- Opening performance
- The Sensex and Nifty opened marginally higher.
- Closing performance
- The indices ended lower after giving up their early gains.
- Trading pattern
- Markets experienced choppy trade.
- Crude oil movement
- Global crude oil prices corrected by more than 7 percent.
- IPO impact
- The continuing IPO boom may pressure liquidity in secondary markets.
- Market outlook
- G. Chokkalingam said the overall market was likely to remain sideways at best.
- Investor focus
- Stock-specific activity was expected in the small- and mid-cap segment.
- Risk factor
- Analysts remained cautious in the near term amid geopolitical concerns.
Quotes
G. Chokkalingam
Head of Research at Equinomics Research
“over 7 percent correction in global crude oil prices is likely to boost markets. However, continued boom in IPOs is set to apply pressures on liquidity available to the secondary markets. Hence overall market is likely to remain at best in sideways. Market is likely to focus on stock specific actions in the small & mid cap segment as new retail investors continue to pour into the markets and there are lot attractive stocks in terms of valuation and unique growth / deep value stories available in”
timesnownews.com
timesnownews.com
Sources
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