New Delhi [India], July 24 : Indian stock indices were largely steady Monday morning with a downward bias, primarily due to low bets at higher levels. Some investors could still be booking their recent profits.
Sensex and Nifty were just 36 points and 4 points lower at the time of writing this report.
On Thursday and Friday, the indices were in the red due to profit booking after the latest bull run — the indices had touched all-time highs early last week.
Several analysts have been pointing out that any further rally from the current peak seems unlikely as valuations were higher, and that is what seems to have been happening in the past two-odd sessions.
In the past month, the indices — Sensex and Nifty — have cumulatively gained about 6 percentage points.
The consistent inflow of foreign portfolio funds, firm economic outlook, firm global markets, and a relative moderation in inflation contributed to the latest bull run in Indian stocks. Foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the fifth straight month, according to data from the National Securities Depository (NSDL).
“The near-term market trend will be influenced by a host of factors like the recent Q1 results, some major results expected this week and policy decisions like the Fed meeting outcome on Wednesday,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The Fed is likely to raise rate by 25 bp on Wednesday, but the market movement will be decided by the commentary of the Fed chief regarding future inflation and rate trends. Investors may wait and watch these events unfold.”
The next US Fed monetary policy meet is scheduled for July 25-26.
The US Federal Reserve's monetary policy committee paused the key interest rate in its latest meeting. The policy rate has been maintained at 5.0-5.25 per cent, which was near zero after the outbreak of COVID-19.
Barring the latest pause, the US central bank has hiked the interest rate for the tenth consecutive time which was necessitated in the fight against soaring inflation.
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