Mumbai, 14 June (IANS). Market analysts said on Saturday that this week the Indian stock market saw excessive ups and downs, which finally closed in the red mark on the last business day. He said that early optimism was seen in the US-China business talks due to progress, which was finally affected by the growing geopolitical stress after Israeli attacked Iran’s nuclear site.
This development gave rise to the global risk-off sensation, which led to a speed in safe-hevan assets such as gold and American bonds. Oil prices rose above $ 76 per barrel after months of consolidation due to the re -emergence of supply disruption.
Vinod Nair, the research head of the Givsit Investments Limited, said, “On the domestic front, the CPI inflation came to a 75-month low, which brought some relief. However, the recent rise in crude oil prices can reversed this trend when the Middle East conflict was rapid. On the sectoral front, the rate-sensitive and banking has made a profitable. Export-oriented sectors like IT and Pharma between rupees increased. “
The market saw a wide -based selling, with all the major regional index in the negative sector, while India Vix rose by more than 7 percent, which reflects increased instability and concerns of investors.
The Nifty 50 declined a rapid decline, which reached the intraday of 24,473 in early trade. However, the index closed down 169.60 points or 0.68 percent to close at 24,718.60. On the Sectoral Front, the Nifty PSU Bank Index performed poorly with a decline of 1.18 percent.
A note of Bajaj Broking Research states, “The broad market was also under pressure, the Nifty Midcap 100 and the Smallcap 100 index declined by 0.37 percent and 0.49 percent respectively. In contrast, the defense shares were seen in the defense shares amidst Israel-Iran’s increasing stress.”
Senior Vice President, Research, Ajit Mishra of Railor Broking Limited said that in view of the current scenario, traders should maintain a balanced approach with positions on both sides and focus on stock selection inspired by sectoral end themetic trend.
Given further, investors are expected to be cautious between premium valuation and geopolitical risks.
Currently everyone’s eyes are on the upcoming US Fed meeting, where interest rates are likely to remain unchanged. However, those who monitor the market said that Fed’s comments and economic estimates would be closely examined for future policy indications.
-IANS
SKT/