Kolkata: Will Sensex and Nifty again come under negative sentiments on Thursday, May 29 after two days of decline? That’s the question on everyone’s lips. While the US markets did not hold out much hope for optimism, with trade uncertainties lingering, the Asian indices could provide some ray of hope with almost all of them trading in the green, Nikkei 225 was surging 1.28%.
It also remains to be seen how the markets react to the industrial production data. India’s industrial production growth decelerated to 2.7% in April on account of poor performance of manufacturing, mining and power sectors. Index of Industrial Production (IIP), which measures the country’s factory output, however rose by 5.2% in April last year. The data was published after market hours on May 28. The NSO data also showed that the manufacturing sector’s output growth slowed to 3.4% in April this year from 4.2% in April last year.
Investor remained cautious on May 28 and Sensex 30 and Nifty 50 suffered profit booking to slip 239.31 points (or 0.29%) to end the session at 81,312.32. Nifty 50 declined 73.75 points (or 0.30%) ending at 24,752.45. On Wednesday the top gainers on Nifty were HDFC Life (+1.51%), Bharat Electronics (+1.24%), Bajaj Finance (+0.91%), Hero MotoCorp (+0.77%), and Bharti Airtel (+0.63%). The top Nifty losers featured IndusInd Bank (−1.93%), Apollo Hospitals (−1.82%), UltraTech Cement (−1.74%), Hindalco (−1.67%), and Nestle India (−1.62%).
India VIX elevated
Analysts pointed out that the India VIX, the fear index, continued to remain at elevated levels despite Wednesday’s correction, signaling caution for Nifty bulls. It declined 2.79% on Wednesday to reach 18.02.
O Wednesday, the Indian rupee settled slightly higher by 2 paise at 85.38 against the American Dollar amidst volatile trade as crude prices experienced upward pressure and the domestic equity markets suffered negative sentiments.
Global markets
Two of the three major US indices ended in the red on May 28. While Dow Jones was 1.17% down, S&P500 and Nasdaq were down by 0.56% and 0.51% respectively. All the three European markets ended in the red — CAC 0.50%, FTSE 0.60% and DAX 0.78%.
However, the Asian markets could inject some optimism among the investors in Dalal Street. GIFT Nifty was trading in the green, up 0.31%. Nikkei 225 was up 1.32%, Straits Times 0.13%, Taiwan Weighted 0.76%, KOSPI 1.22%, Only Shanghai Composite was down marginally by 0.01%.
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Though two of the three US indices closed in the red on May 28, some optimism could be injected by the Asian indices almost all of which, including GIFT Nifty, was trading in the green on May 29. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
