Stock Market Highlights 2 Sept 2022: Market ends flat amid volatility; Nifty below 17,550, Sensex settles near 58,800
The Indian market ended flat amid volatility on Friday. Benchmarks Nifty 50 and Sensex erased all early gains as they closed with minor cuts as large cap stocks came under tremendous selling pressure in the last trading session of the week.
The broader Nifty50 closed near 17,500, while the Sensex ended with marginal gains of 36 points to settle near 58,800.
The market struggled for a firm direction today as global markets were largely under selling pressure ahead of the release of US job data, which could provide insight into upcoming Fed actions, said Vinod Nair, Head of Research at Geojit Financial Services.
"Oil prices rose ahead of the OPEC+ meeting on the expectation of a reduction in output, despite the fact that weak global growth prospects remain a concern. A surging dollar index and rising US bond yields could be reflected in the elevated volatility of the domestic market in the near term," he added.
Meanwhile, Nifty Midcap and Small cap ended in the red too as the former closed with 0.36% cuts, while the latter ended lower by 0.17%.
Sectorally, Oil & Gas, PSU Bank saw maximum selling pressure, While Media, FMCG and Financial Services attracted buying interest.
On weekly basis, the benchmarks ended flat in the week ended September 2022. BSE Telecom and Nifty Alpha 50 were the top two gainers on the BSE and NSE respectively in the holiday-shortened week. IT was the worst performing index this week on both NSE and BSE with over three per cent drop.
ITC, Adani Ports, L&T, HDFC Ltd, Kotak Bank, HDFC Bank and State Bank of India were among top gainers in a weak market.
BPCL, Shree Cements, Hero MotoCorp, Reliance Industries, Maruti Suzuki and Nestle India led the drag.
"Market is back to a phase of high volatility. The recent resilience of the Indian market can be attributed largely to FIIs turning buyers. But this FII bullishness appears to be over in the near-term as evidenced by the FII sell figure of Rs 2290 cr yesterday. Also FIIs are increasing their short positions in derivatives," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He said this is a rational response to the surging dollar index which touched a 20-year high of 109.6% yesterday. This, and the US 10-year bond yield racing to 3.26% are unfavorable for emerging market equities and therefore investors have to be cautious in the near-term, said Vijaykumar
"US jobs data to be released today and the CPI numbers expected on September 13th will give an indication about the strength of the US economy and its influence on the US Fed's rate decision later this month. The near-term outlook for the market has turned bearish amidst volatility. Investors can utilise deep cuts in the market to buy domestic cyclicals like autos which are showing strong resilience supported by healthy and improving fundamentals," the expert added.
The Indian market ended flat amid volatility on Friday. Benchmarks Nifty 50 and Sensex erased all early gains as they closed with minor cuts as large cap stocks came under tremendous selling pressure in the last trading session of the week.
The broader Nifty50 closed near 17,500, while the Sensex ended with marginal gains of 36 points to settle near 58,800.
The market struggled for a firm direction today as global markets were largely under selling pressure ahead of the release of US job data, which could provide insight into upcoming Fed actions, said Vinod Nair, Head of Research at Geojit Financial Services.
"Oil prices rose ahead of the OPEC+ meeting on the expectation of a reduction in output, despite the fact that weak global growth prospects remain a concern. A surging dollar index and rising US bond yields could be reflected in the elevated volatility of the domestic market in the near term," he added.
Meanwhile, Nifty Midcap and Small cap ended in the red too as the former closed with 0.36% cuts, while the latter ended lower by 0.17%.
Sectorally, Oil & Gas, PSU Bank saw maximum selling pressure, While Media, FMCG and Financial Services attracted buying interest.
On weekly basis, the benchmarks ended flat in the week ended September 2022. BSE Telecom and Nifty Alpha 50 were the top two gainers on the BSE and NSE respectively in the holiday-shortened week. IT was the worst performing index this week on both NSE and BSE with over three per cent drop.
ITC, Adani Ports, L&T, HDFC Ltd, Kotak Bank, HDFC Bank and State Bank of India were among top gainers in a weak market.
BPCL, Shree Cements, Hero MotoCorp, Reliance Industries, Maruti Suzuki and Nestle India led the drag.
"Market is back to a phase of high volatility. The recent resilience of the Indian market can be attributed largely to FIIs turning buyers. But this FII bullishness appears to be over in the near-term as evidenced by the FII sell figure of Rs 2290 cr yesterday. Also FIIs are increasing their short positions in derivatives," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He said this is a rational response to the surging dollar index which touched a 20-year high of 109.6% yesterday. This, and the US 10-year bond yield racing to 3.26% are unfavorable for emerging market equities and therefore investors have to be cautious in the near-term, said Vijaykumar
"US jobs data to be released today and the CPI numbers expected on September 13th will give an indication about the strength of the US economy and its influence on the US Fed's rate decision later this month. The near-term outlook for the market has turned bearish amidst volatility. Investors can utilise deep cuts in the market to buy domestic cyclicals like autos which are showing strong resilience supported by healthy and improving fundamentals," the expert added.
Latest Updates
Nifty posts negative close on the weekly chart
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