Vinod Nair, Head of Research, said, “With inflation expected to come within RBI’s tolerance level and further easing in food prices due to seasonal correction in vegetable prices, it eased monetary policy in February. It can create hope.” Geojit Financial Services.
In the last trading session of the week, the Nifty saw a sharp recovery of more than 2 percent from the day’s lows, rebounding from a significant decline earlier in the session, up 220 points at 24,768 (+0.9 percent). Closed.
Buying in FMCG, IT and banking stocks supported the recovery, even as broader market sentiment remained cautious.
Siddhartha Khemka, Motilal Oswal Financial Services Ltd, said, “The intraday sell-off in Indian equities followed weakness across Asian markets, driven by a stronger dollar, rising US Treasury yields and lingering doubts over China’s economic recovery. posted huge losses in between.”
A lack of clarity on China’s stimulus plans weighed on metal stocks, sending the Nifty Metal Index down 0.7 percent. On Friday, the Sensex was up 843.16 points, or 1.04 percent, at 82,133.12. During the session, the BSE benchmark hit an intraday high of 82,213 after recovering from a low of 80,082.
Mid-cap and small-cap stocks underperformed large caps. The Nifty Midcap 100 index closed down 30 points, or 0.05 percent, at 58,991. And the Nifty Small Cap 100 index fell 59 points or 0.30 percent to close at 19,407.
According to experts, the gradual recovery in IIP and primary sector data points to a better performance of H2 earnings compared to H1 of FY25. Currently, selling by FIIs is believed to have moderated, at least in the short to medium term, which will further bolster sentiment, he added.
The Nifty IT index hit a new high and rose nearly 3 percent on the week after US inflation data met expectations, raising hopes for a Fed rate cut next week.
Meanwhile, gold sold off sharply as profit booking intensified following mixed signals from US economic data. MCX Gold fell to Rs 77,450 from Rs 79,000. Current weakness suggests a possible trading range of Rs 76,000-78,000 in MCX, short-term outlook remains cautious amid ongoing market volatility.