Rising oil prices, signs of reduced profits; real estate stocks down
Mumbai, February 4 (SocialNews.XYZ) Continued earnings booking along with subdued global signals due to high oil prices led India’s major equity indices – S&P BSE Sensex and NSE Nifty50 – to settle slightly in the red on Friday.
At the start of the day’s trading, both indices opened nearly flat but rose within the first few minutes to hit an intraday high. They fell soon after and reached an intraday low after noon. Globally, Asian equity markets were mostly mixed, supported by a rebound in U.S. futures led by Amazon.
However, a rise in oil prices to a seven-year high has kept traders nervous over the prospect of higher interest rates to curb global inflationary pressures.
Similarly, European stock indices faltered on Friday, even after strong Amazon earnings, while a sell-off briefly pushed German 5-year bonds positive for the first time in four years after the European Central Bank warned. makes a more hawkish comment than expected.
On the home front, NSE volumes have been below the recent average. Among the sectors, metals led the gains while real estate, banks and autos fell the most.
Consequently, Sensex stood at 58,644.82 points, down 0.24% or 143.20 points, and Nifty at 17,516.30 points, down 0.25% or 43.90 points.
“On the daily charts, lack of buying enthusiasm amid steady selling by REITs resulted in a negative end to Nifty,” said Deepak Jasani, head of retail research, HDFC Securities.
“However, the fact that Nifty is slowly patching up raises hopes of a resurrection in Nifty’s rise to power shortly.”
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “Global signals have been mixed with rising bond yields weighing on sentiment following the 25 basis point interest rate hike by the BoE and the hawkish position of the ECB.”
“The ECB kept interest rates unchanged, but declined to comment on previous expectations of no rate hikes, leaving the door open for a hike in 2022.”
Further, Vinod Nair, Head of Research at Geojit Financial Services, said, “The domestic market continued to follow yesterday’s downtrend, with most sectors except for consumer staples and metals , facing a sale”.
“Western markets also lacked strength, with the Bank of England imposing a back-to-back rate hike at yesterday’s policy meeting, while the dovish ECB acknowledged the risk of higher inflation signaling a rate hike going forward. Wall Street remained highly volatile as a huge selloff was seen in Meta (Facebook) after its earnings.”