The BSE Sensex experienced a significant drop of over 300 points in morning trade on Thursday, with the index trading at 72,236.94 points, down 386.15 points. The top laggards on the Sensex were Bharti Airtel and Titan, both down 2 per cent. Deepak Jasani, Head of Retail Research at HDFC Securities, highlighted global brokerage Jefferies’ prediction that India will be the third largest economy by 2027, citing consistent GDP growth, supportive geopolitics, surging market cap, continued reforms, and a strong corporate culture. The Union Cabinet’s approval of changes to the Foreign Direct Investment (FDI) policy for the space sector also made waves, allowing up to 100 per cent foreign investment under the automatic route for certain activities, including manufacturing of satellite components and systems.
Asian equities saw a rise on Thursday, signaling fresh momentum in global equities after Nvidia Corp. unveiled a better-than-expected revenue forecast. The rebound in big tech stocks after Nvidia Corp.’s solid results and outlook bolstered confidence in the artificial intelligence frenzy that has powered the stock market resurgence. US stocks also finished mostly higher on Wednesday, with the Dow Jones Industrial Average and S&P 500 advancing within the final half-hour of trading. Minutes from the Federal Reserve’s January meeting showed concerns about the risks of cutting interest rates too soon, with uncertainty about how long borrowing costs should remain at their current level.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the underlying strength of the ongoing market rally and the trend of delivery-based buying in private banks. He also noted the tug of war between Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs), with DIIs emerging as the clear winners. This trend has resulted in DIIs continuously buying while FIIs have been selling. Vijayakumar also pointed out that despite the elevated valuations, private banks are still attractively valued in the market.
Overall, the BSE Sensex’s drop, the global market trends, and the ongoing tug of war between FIIs and DIIs paint a complex picture of the current state of equity markets. The dynamics of the global market, combined with domestic policy changes, continue to impact the Indian stock market, leaving investors and analysts alike closely monitoring the emerging trends and developments.
–IANS
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