Shillong, July 28: According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, the Nifty remained under pressure throughout the session but managed to recover slightly in the last hour, ending the day with a marginal loss of 14 points at the 19646 level.
Sector-wise, the market showed mixed performance, with the Realty sector (+1.8%) witnessing significant buying activity. Power stocks also attracted attention due to appealing valuations and substantial investments in the sector.
Khemka expects sectoral rotation in the market, while the Index is likely to remain in a consolidation zone during the ongoing result season.
As per IANS, investors will closely monitor the upcoming manufacturing data to be released globally and locally next week. Additionally, the Bank of England’s rate decision, scheduled for Thursday next week, will be a focal point of interest.
The auto sector will be in focus as companies announce their monthly sales numbers.
Vinod Nair, Head of Research at Geojit Financial Services, pointed out that the better-than-expected US Q2 GDP data, while positive, had a dampening effect on the domestic market as it indicated the possibility of another rate hike. The uncertainty was further compounded by the Fed chief’s comments about a data-centric approach without ruling out rate hikes. The reversal of buying trends by Foreign Institutional Investors (FII) and the increase in US bond yields also contributed to market volatility, Nair added.
Despite the challenges in the domestic market, Asian markets largely remained positive, buoyed by the Bank of Japan’s decision to retain its policy rate, contrary to earlier speculation about the removal of stimulus measures.