On September 6, the Indian market ended flat after a turbulent trading week. Amid mixed global cues, aggressive selling by foreign institutional investors (FIIs) exerted pressure on the market. Earlier in the week, rising global bond yields, a strengthening US dollar, and climbing crude oil prices weighed on the investor sentiment. However, by week’s end, easing bond yields and oil prices, coupled with the monetary policy from the Reserve Bank of India (RBI), provided some respite to the markets.
The benchmark BSE Sensex closed up by 0.25%, gaining 167.22 points to settle at 65,995.63. In contrast, the NSE Nifty edged up by 15.2 points to close at 19,653.50. While the BSE Small-cap index experienced a 0.8% rise, the BSE Mid-cap index slipped by the same percentage. The BSE Large-cap index remained unchanged.
In the sectoral performance, the BSE Realty index saw a 2% increase, the BSE IT index grew by 1.8%, and the BSE Capital Goods index advanced by 1%. However, the BSE Power index fell by 2.5%, the BSE Metal index dropped by 2.3%, and the BSE Telecom index declined by 2%.
Gainers in the BSE Small-cap index included stocks like Vascon Engineers, Sasken Technologies, Bhagiradh Chemicals & Industries, Otham Investment & Infrastructure, Raghav Productivity Enhancers, and Good Luck India, which surged up to 20%. On the downside, stocks like MTNL, DCM Shriram Industries, Aarti Pharma Labs, Steel Exchange India, GE T&D India, Set Industries, Indiabulls Housing Finance, and Kalyani Steels witnessed declines ranging from 7% to 9%.
Rupak De of LKP Securities opined that despite selling pressure in the banking sector, Nifty managed to close the week with a minor uptick. He believes that as long as Nifty remains above the crucial 19,500 support level, market sentiment will stay positive, expecting strong support from put writers at this level. On the upside, he pegs Nifty’s resistance at 19,750-19,800. De suggests that as long as Nifty holds above 19,500, adopting a buy-on-dips strategy would be effective.
In summary, while the week saw some ups and downs influenced by global factors and institutional sell-offs, market resilience was evident. With key support levels in place, the market sentiment remains cautiously optimistic.
