After day-long buying yesterday, profit-booking by foreign institutional investors (FIIs) was clearly visible as Friday opened. The market started with a sharp decline. Sensex was trading 200 points down and Nifty 80 points down. After this the decline became more rapid.
At 09:21 am, the Sensex was trading 274 points down at 81,974. Nifty fell 93 points and was around 25,400. Bank Nifty was down 196 points at 60,991. India VIX fell 1.76%. Midcap and smallcap indices were also trading in the red. The IT index was up 1.5%. Consumer durables and media indexes were also up. All other indices were trading in the red.
Only 10 out of 50 Nifty stocks were in the green, with Infosys being the top gainer with a gain of 2.2%. Tech Mahindra, HCL Tech, Jio Fin, Wipro, TCS, Eternal, Trent, Eicher Motors, TMPV were also among the gainers. Maruti, Indigo, Shriram Fin, M&M, Bharti Airtel, Reliance, Nestle, Coal India, HUL were the top losers of the day.
On Friday, the last day of the week, global signals for the domestic stock market seem weak. Resumption of selling by foreign investors, volatility in US markets, fall in commodity prices and a cautious outlook ahead of important domestic data could create a cautious environment in the market. However, the market seems to be supported by continuous buying by domestic institutional investors.
FIIs became sellers again, DIIs captured the market
After a day of buying, foreign institutional investors (FIIs) again resorted to profit booking yesterday. FIIs made huge sales of about ₹3,466 crore in the cash market. In contrast, domestic institutional investors (DIIs) continued to support the market. Domestic funds continued their strong buying for the third day, infusing around ₹5,032 crore into the market, helping arrest the decline.
Pressure from high levels in US markets
US markets witnessed a strong rally during the day, but this gain could not be sustained due to weakness in tech stocks. The Dow Jones Industrial Average closed up a modest 17 points after falling nearly 300 points from its intraday high. Meanwhile, tech indexes were hit by heavy selling following Nvidia’s results, with the Nasdaq falling nearly 275 points. Today the initial signals are also weak. GIFT Nifty is trading around 25,550, down nearly 100 points, while Dow futures are down nearly 300 points.
Big fall in gold and silver
Precious metals witnessed sharp profit-booking. Silver fell by around ₹8,600 to close below ₹2,59,700. Gold also fell by about ₹1,400 to ₹1,59,700. There was pressure on the international market also. On COMEX, gold fell by around ₹25, while silver fell by around 3%.
Heavy selling in base metals
Base metals also remained under pressure amid concerns over global growth. Aluminum fell about 1% on the LME, while nickel fell about 2%. This may affect metal stocks.
Crude oil fluctuations
Sharp fluctuations were seen in crude oil throughout the day. After intraday movement of around ₹3, crude oil traded flat around ₹71 per barrel. The market is being closely monitored due to the ongoing diplomatic talks between the US and Iran. Both the countries have decided to resume talks on March 2, which currently seem balanced.
There could be a big block deal for Vishal Mega Mart
There will be a close watch on the shares of Vishal Mega Mart today. There could be a big block deal worth around ₹3,500 crore in the company. According to reports, the promoter may sell about 6.5% of its stake at a floor price of ₹115 per share. Excess supply may cause stock fluctuations.
Omnitech Engineering IPO got weak response
Omnitech Engineering’s IPO is closing today, but the response from investors has been very weak. So far, the issue has been subscribed only about 13%. The price band for the IPO has been fixed at ₹216 to ₹227. Market expert Anil Singhvi advises investors to look for opportunities in this issue after listing.
Gaudium IVF will be listed today
Gaudium IVF IPO, which was subscribed more than 7 times, will be listed on the stock exchanges today. The issue price was fixed at ₹79. Investors will keep an eye on whether the stock lists at a premium or not and what the strategy should be going forward.