3 days ago
Indian Markets Extend Losing Streak as Global Risks Persist
Indian share markets fell for the third week in a row.
Foreign investors sold many shares, but Indian institutions bought almost as much.
High oil prices, global conflicts and rising US bond yields made investors cautious.
The rupee strengthened slightly against the US dollar.
Smaller-company shares still rose a little, even though the main indexes declined.
Investors are waiting for economic growth and inflation numbers.
The path of oil prices may depend on whether ships can safely pass through the Strait of Hormuz.
Jio Platforms and possibly the National Stock Exchange of India could launch very large stock-market offerings soon.
Analysts say investors should be careful and choose individual stocks rather than making aggressive bets on the entire market.
Sensex fell 0.35% and Nifty declined 0.21%, marking their third straight weekly loss.
Foreign institutional investors sold equities worth Rs 20,260 crore, while domestic institutions invested Rs 19,309.93 crore.
Oil prices, geopolitical tensions, higher US bond yields and renewed foreign selling weighed on market sentiment.
Jio Platforms may raise around Rs 37,700 crore through an IPO, while more than 25 issues are expected in September.
Markets are awaiting GDP and inflation data, with crude prices, Federal Reserve policy and FII flows expected to guide trading.
- Who
- Indian equity investors, foreign institutional investors, domestic institutional investors and companies planning IPOs.
- What
- Indian benchmark stock indexes recorded their third consecutive weekly decline amid selling pressure and global economic uncertainty.
- Where
- Indian financial markets, with sentiment also affected by developments in the United States and the Strait of Hormuz.
- When
- During the reported week, with GDP and inflation data expected to influence the coming sessions.
- Why
- Renewed FII selling, geopolitical tensions, elevated crude prices, higher US bond yields and uncertainty over Federal Reserve policy weighed on the market.
Supportive Factors
Risk Factors
Institutional flows
Supportive Factors
Domestic institutional buying of Rs 19,309.93 crore helped cushion the effect of foreign selling and provided market support.
Risk Factors
Foreign institutional investors sold Rs 20,260 crore during the week, creating continued pressure on benchmark indexes.
Crude oil and geopolitics
Supportive Factors
Improved shipping flows through the Strait of Hormuz and sustained lower crude prices could reduce the geopolitical premium and support emerging-market equities.
Risk Factors
Renewed disruptions around the Strait of Hormuz could raise oil prices and geopolitical risk, quickly reversing recent market relief.
Federal Reserve policy
Supportive Factors
Observers still expect the Federal Reserve to leave interest rates unchanged in September, which could limit immediate policy-related disruption.
Risk Factors
Kevin Warsh adopted a more hawkish tone, and the probability of a rate hike has risen significantly if policymakers lack confidence that inflation is returning to 2%.
Key facts
- Sensex close
- 77,264.51, down 276.32 points or 0.35% for the week.
- Nifty close
- 24,175.65, down 76.35 points or 0.21% for the week.
- FII activity
- Foreign institutional investors sold equities worth Rs 20,260 crore during the week.
- DII activity
- Domestic institutional investors invested Rs 19,309.93 crore during the week.
- Rupee
- The rupee gained 32 paise against the US dollar to close at Rs 95.38.
- Expected IPO activity
- More than 25 IPOs are expected in September; Jio Platforms' proposed issue could raise around Rs 37,700 crore.
- Key Nifty levels
- Resistance is identified around 24,200–24,300, while 24,000 is a key support level.
Sources
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