BENGALURU: India’s benchmark Nifty traded within a narrow range on Tuesday as traders refrained from making big bets amid continued selling by foreign investors, while domestic institutional buying provided some support.
The Nifty 50 ended largely unchanged at 19,664.70 points, while the S&P BSE Sensex fell 0.1% to 65,945.47 points.
The Nifty saw an intraday move of 62 points, the narrowest range in three weeks.
Both benchmarks have fallen about 2.5% over the past week after the US Federal Reserve signaled last week that it was unlikely to finish raising rates.
“The foreign investors selling on the Fed outcome are being offset by buying from domestic institutions and high net worth individuals as they are still bullish on the India story,” said Deepak Jasani, head of retail research at HDFC Securities.
“Markets will not fall sharply unless there is an unexpected event in the coming months. Upside potential also appears limited and we may not move beyond recent highs,” Jasani said.
Foreign institutional investors (FIIs) have been net sellers so far this month, selling shares worth $1.36 billion on September 22 after pouring more than $15 billion into Indian equities this year.
On Monday, FIIs sold 23.33 billion rupees ($280.24 million) worth of shares, while domestic investors bought 15.79 billion rupees worth of shares, according to provisional stock exchange data.
The more domestically focused small caps rose 0.6%, while midcaps fell 0.2%.
IT stocks remained weak, falling 0.5% on concerns over demand uncertainties due to a higher interest rate environment in the US, a key market for Indian IT companies.
Among individual stocks, Eicher Motors rose 3.7% after Jefferies raised its price target to Rs 4,150.
The Nifty 50 ended largely unchanged at 19,664.70 points, while the S&P BSE Sensex fell 0.1% to 65,945.47 points.
The Nifty saw an intraday move of 62 points, the narrowest range in three weeks.
Both benchmarks have fallen about 2.5% over the past week after the US Federal Reserve signaled last week that it was unlikely to finish raising rates.
“The foreign investors selling on the Fed outcome are being offset by buying from domestic institutions and high net worth individuals as they are still bullish on the India story,” said Deepak Jasani, head of retail research at HDFC Securities.
“Markets will not fall sharply unless there is an unexpected event in the coming months. Upside potential also appears limited and we may not move beyond recent highs,” Jasani said.
Foreign institutional investors (FIIs) have been net sellers so far this month, selling shares worth $1.36 billion on September 22 after pouring more than $15 billion into Indian equities this year.
On Monday, FIIs sold 23.33 billion rupees ($280.24 million) worth of shares, while domestic investors bought 15.79 billion rupees worth of shares, according to provisional stock exchange data.
The more domestically focused small caps rose 0.6%, while midcaps fell 0.2%.
IT stocks remained weak, falling 0.5% on concerns over demand uncertainties due to a higher interest rate environment in the US, a key market for Indian IT companies.
Among individual stocks, Eicher Motors rose 3.7% after Jefferies raised its price target to Rs 4,150.
ADVERTISEMENT
