In the last hour of yesterday’s session, the market saw a great recovery from the lower levels and the market closed close to the highest level of the day. The Nifty Bank and the midcap index managed to shut in the green mark. Positive GDP data, strong GST collections and MPC meeting of tomorrow, after positive speed in markets such as interest rate cuts, the first half saw pressure of geopolitical news in the first half.
The recent updates on tariffs between the US and China, double tariffs on steel and aluminum and war between Russia and Ukraine led to a negative perception in the market. Based on these factors, crude oil also saw a boom yesterday.
The Nifty slipped to about 220 points at one time. However, the second half of the session also saw a spectacular recovery from the lower levels. Thus the Nifty managed to save the 24,500 level in yesterday’s session. Public banks performed better yesterday. Today, one year of Lok Sabha exit poll is being completed, the day the market saw a tremendous boom. However, the Nifty is currently stuck in a radius of 24,500-25,000.
The market supports many triggers
Vinod Nair, the research head of Geojit Investments, said that the domestic market was strong for the third consecutive week. Possible concerns about global tariffs and increasing geopolitical tension between Russia-Ukraine were seen. Investors are now cautious about potential risks amid global uncertainties. However, strong institutional flows and FMCG, real estate and financial stocks still showed flexibility in the domestic market. Market rates cut, better monsoon, fourth quarter GDP data and GST collection expectations are supporting. He said that in the current situation, investors are adopting a cautious strategy in the short term.
Signs from global markets
US markets overcome lower levels yesterday. After falling nearly 400 points, Dow Jones closed with recovery. The S&P 500 index and Nasdac also increased. Tech and steel stocks supported the market here. America’s manufacturing PMI has declined for the third consecutive month. The paper industry has expressed concern over the lack of deal with China. He said that if the deal is not done then the condition will be worse.
Shopping is also being seen in Asian markets today. Japan’s Nikkei index was trading with a gain of about half a per cent. South Korean markets are closed today. Hong Kong’s Hangseng, China’s Shanghai Composite and Taiwan’s market are also getting a boom.
America-China tariff crisis
The US has given relief to China on some goods. China will get this relief till 31 August. There may be talks between Chinese President Xi Jinping and US President Donald Trump this week. China is a producer of about 70 percent rare economy metals. It is also used to make fighter jets, nuclear reactor control rods.
FII-DII data
Yesterday’s session saw selling from foreign institutional investors. At the same time, domestic institutional investors have made almost double purchases.
