Sensex, Nifty fall in early trade as crude, FII selling weigh
New Delhi, Aug 14
Domestic equity benchmarks traded lower in early deals on Friday as elevated crude prices and continued foreign investor selling kept sentiment subdued.
Sensex hit an intraday low of 77,747, down 332 points or 0.42 per cent in morning trade, while Nifty traded 84.39 points or 0.34 per cent lower at 24,311.45.
Sectorally, the Nifty Metal index was the biggest laggard and declined more than one per cent, followed by Nifty MidSmall IT & Telecom, Nifty Auto, Nifty IT and Nifty Cement indices. Meanwhile, Nifty Consumer Durables was among the few gainers, rising 0.29 per cent.
Market experts said the near-term trend is likely to remain range-bound, with the Nifty consolidating between 23,800 and 24,400 in the absence of a strong trigger for a breakout.
Brent crude had surged above $91 a barrel but subsequently cooled to below $87, providing some relief to Indian equities.
"Range bound nature of the market is likely to continue in the near-term. Nifty has been consolidating between 23,800 and 24,400 without any triggers for a breakout above the upper band or a breakdown below the lower band," an expert said.
"Select private sector banks offer value buying opportunities for the long term," the expert added.
In addition, FIIs were net sellers on Thursday, offloading equities worth Rs 510 crore. However, domestic institutional investors continued to provide strong support, buying shares worth Rs 4,353 crore.
According to analysts, FPI selling had tapered and foreign investors had recently turned buyers, although a clear trend in FII activity was yet to emerge.
Market activity continued to be concentrated in the mid- and small-cap segments, with experts expecting the trend to persist.
Additionally, Brent crude was trading flat at $87.08 a barrel, while US West Texas Intermediate crude was up 0.16 per cent to $81.38.
— IANS
Reader Comments
Crude oil above $87 is worrying for our economy. We import most of our oil, so high prices impact everything from petrol to inflation. But at least the government is managing things okay. Let's see how the market behaves after the holiday weekend. Fingers crossed! 🤞
Range-bound market between 23,800-24,400? That's actually good for periodic investors. SIP continues, volatility se dar nahi lagta. But I wish experts would stop saying "consolidation" and give us some real insights. Mid-small cap is where the action is!
FII selling ₹510 crore is nothing compared to DII buying of ₹4,353 crore. The real story here is that domestic institutional investors are the new power players in this market. Foreign money aayega jaayega, but our institutions are standing strong. Good sign for Indian markets long term.
It's frustrating to see metal stocks falling so much. My portfolio is heavily invested in them. But one must trust the process - these cyclical stocks will eventually recover. The expert's suggestion about private sector banks is worth noting; they traditionally provide good long-term returns. Let's stay invested and stay calm. 🧘♀️
The Indian market's resilience is quite impressive actually. In other emerging markets, such FII selling would cause much bigger damage. The fact that DIIs are so strong really shows how much India's domestic investing culture has evolved. Still, I'd wait for a clear direction before making fresh investments.
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