The Foreign Institutional Investors (FIIs) purchased shares worth a net amount of ₹790.40 crore, while Domestic Institutional Investors (DIIs) sold shares worth a net amount of ₹2,964.23 crore.
Friday witnessed a challenging day for domestic shares as investors opted to capitalize on their profits, influenced by weak global cues. Sectors such as FMCG, banks, and realty experienced corrections, although media and PSU banks bucked the trend. The Nifty 50 index initially surged to a morning high of 19,523.60 but settled above the 19,330 mark. The global equity market faced a downturn due to a surge in US bond yields, fueled by expectations of sustained high interest rates.
The release of US private payroll data, indicating a significant increase, further intensified concerns. Market participants are eagerly awaiting key US non-farm payroll and unemployment data ahead of the July meeting of the Federal Reserve, as it will provide crucial insights into the central bank’s policy direction. Investors remain cautious, considering the potential negative impact of impending interest rate hikes, the strength of the US dollar, and rising crude oil prices supported by OPEC cuts.
The S&P BSE Sensex, the barometer index, experienced a decline of 505.19 points or 0.77% to reach 65,280.45. Similarly, the Nifty 50 index recorded a loss of 165.50 points or 0.85%, settling at 19,331.80. Major drags on the indices included ICICI Bank (down 1.28%), Bajaj Finance (down 1.93%), and HDFC Bank (down 0.84%). In the broader market, the S&P BSE Mid-Cap index slipped 0.76%, while the S&P BSE Small-Cap index declined 0.28%. The market breadth leaned towards negativity, with 1,413 shares rising, 2,050 shares falling, and 117 shares remaining unchanged on the BSE.
Mr. Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services said, “On the domestic front, markets are witnessing profit booking at a higher level after seeing a run-up of more than 4% in the last eight trading sessions. Going forward, markets are likely to sustain the current momentum, as stock-specific action will pick up with the onset of the Q1FY24 earning season. India’s retail Inflation data to be released next week would also provide some cues. The technology sector is likely to remain in focus with TCS and HCL Tech announcing their result on Wednesday followed by Wipro on Thursday.”
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Updated: 07 Jul 2023, 06:50 PM IST