- India’s Sensex corrects, tracking negative global stocks, tepid risk sentiment.
- Sensex hit fresh record highs above 74,000 last week but finished flat on Thursday.
- Markets stay cautious ahead of the US and Indian CPI inflation data on Tuesday.
The Sensex 30, one of India’s key benchmark indices, corrects after opening in the red on Monday.
The Indian stock index takes the negative lead from the mixed Asian stock markets and losses in the Gift Nifty futures. Traders are in a risk-averse position, refraining from placing any fresh bets on risky assets ahead of Tuesday’s Consumer Price Index (CPI) inflation data from India and the US.
At the time of writing, the Bombay Stock Exchange (BSE) Sensex 30 is dropping 0.40% on the day to 73,833.78. Indian markets were closed last Friday on account of Mahashivratri.
Stock market news
- The top gainers on Sensex so far are Nestle, Sun Pharma, Ultra Tech Cement, Bajaj FinServ and Bharti Airtel. Meanwhile, the top losers are IndusInd Bank, Tata Steel, Power Grid, Tata Motors and Infosys.
- Several Tata stocks fall up to 10% as Tata Sons IPO looks unlikely. The company seems to be exploring other options to adhere to the Reserve Bank of India (RBI) norms.
- Securities and Exchange Board of India (SEBI) bars JM Financial from acting as lead manager of any public debt issue.
- IndiGo co-founder Rakesh Gangwal likely to sell a higher stake of 5.8%, looks to raise Rs 6,600 crore.
- The US stock markets ended in the red on Friday, as investors resorted to profit-taking amid high valuations and gearing up for the critical US inflation report.
- On Friday, the headline NFP rose by 275K in February, compared to market forecasts of 200K while the January figure of 353K was revised down to 229K, a difference of 124K.
- Markets are currently pricing in about a 75% chance that the Fed could begin easing rates in June, higher than a 63% probability seen last Thursday, according to the CME FedWatch Tool.
- The main event risks for markets this week will be the inflation data releases from India and the US.
Nifty 50 FAQs
The Nifty 50, or simply Nifty, is the most commonly followed stock index in India. It was launched in 1996 by the National Stock Exchange of India (NSE). It plots the weighted average share price of 50 of the largest Indian corporations, offering investors comprehensive exposure to 13 sectors of the economy. Each corporation’s weighting is based on its “free-float capitalization”, or the value of all its shares readily available for trading.
The Nifty is a composite so its value is dependent on the performance of the companies that make up the index, as revealed in their quarterly and annual results. Another factor is government policies, such as when in 2016 the government decided to demonetize 500 and 1000 Rupee banknotes. This led to a temporary cash shortage which negatively impacted the Nifty. The level of interest rates set by the Reserve Bank of India is a further factor as it determines the cost of borrowing. Climate change, pandemics and natural disasters are also drivers.
The Nifty 50 was launched on April 22, 1996 at a base level of 1,000. Its highest recorded level to date is 22,097 achieved on January 15, 2024 (this is being written in Feb 2024). The index first closed above the 10,000 level on October 17, 2017. The Nifty recorded its biggest daily decline on March 23, 2020 during the Covid pandemic, when it fell 1,125 points or 12.37%. The Nifty’s biggest gain in a single day occurred on May 18, 2009, when it rose 651 points after the results of the Indian elections.
Major corporations in the Nifty 50 include HDFC Bank, Reliance Industries, ICICI Bank, Tata Consultancy Services, Larsen and Toubro, ITC Ltd, Housing Development Finance Corporation Ltd and Kotak Mahendra Bank.
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