SENSEX, NIFTY FAIL TO HOLD GAINS, SLIP IN RED WEIGHED BY TECH, METAL STOCKS
Benchmark indices Sensex and Nifty failed to hold intra-day gains and slipped in negative territory on April 30, weighed by IT, metal, and media stocks. Earlier in the day, auto stocks powered benchmark index Nifty 50 to hit fresh record high of 22,779.75.
The Sensex settled 188.5 points or 0.25 percent down at 74,482.78, and the Nifty was down 38.60 points or 0.17 percent at 22,604.8. The market breadth was in favour of gainers as around 1,986 shares advanced, 1,625 shares declined, and 140 shares unchanged.
Nifty 50 hit its previous high on April 10 at 22,775 levels, and has taken 12 sessions to hit a fresh record high. The frontline index has recorded gains of more than 19 percent over the past six months.
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Among sectors, the Nifty Auto index hit an all-time high of 22,634.05, led by gains in M&M and Bajaj Auto. This was followed by the Nifty Realty index, which was up over two percent as well.
On the contrary, Nifty IT, Metal, and PSU Bank indices were top sectoral laggards, slipping up to 0.5 percent. The volatility gauge India VIX surged 6 percent to hover around 13 levels.
"Nifty 50 is trading around its historical average. The market cap to GDP ratio at 132 percent is a significant premium to the historical average. Valuations remain around the fair value as the corporate profit to GDP ratio (little below 5 percent) is also at a premium to the historical average," Nilesh Shah, MD & CEO at Kotak Mahindra AMC said in an interview to Moneycontrol.
He added, "If events like the US Fed pivot, geopolitical risks, elections, earnings growth, etc., are better than the market's expectations, we will likely witness a bullish market."
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VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that the current bull market is resilient, despite headwinds slowly gathering momentum.
"FIIs are consistently being outsmarted by DIIs and retail investors. Every time US bond yields go up, particularly when the 10-year yield rises above 4.5 percent, the FIIs sell. But the DII-plus-retail buying has been completely overwhelming the FII selling, forcing the FIIs to buy the same stocks they sold earlier at higher prices later," he said.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
2024-04-30T08:39:55Z dg43tfdfdgfd