Shillong, August 4: Indian domestic equities experienced relief after three days of selling pressure as India’s services activity surged to 62.3, the highest in 13 years, driven by robust demand, according to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.
As per IANS, the Nifty opened with a gap up and recorded significant gains of 135 points (+0.7%) to reach 19,517 levels. The broader market also saw positive movement, with the Nifty midcap 100 and Nifty smallcap 100 rising by +0.8% each.
Most sectors closed in the green, with IT, Pharma, Private Bank, and Consumer Durables emerging as top gainers, each registering over 1% growth, except for Auto and PSU Bank, which ended in the red.
E-commerce sector also gained attention following Zomato’s impressive financial results, turning PAT positive.
Global markets remained cautious due to poor service PMI data and US jobless claim data, increasing speculations of rate hikes. Investors are now eagerly awaiting nonfarm payroll data and the unemployment rate, which will be released late on Friday for further guidance.
The upcoming week is crucial as RBI is set to announce its interest rate decision, leading to potential market movements in a broader range with some volatility. Interest-sensitive sectors are likely to remain in focus, Khemka pointed out.
Positive earnings reports played a vital role in boosting the domestic market and aiding its recovery from weak global cues, said Vinod Nair, Head of Research at Geojit Financial Services. The pharma sector sustained its positive momentum, with IT and banking stocks also contributing to the trend.
However, the increasing US bond yields continued to hinder the global market and impede foreign fund inflows into the domestic market, Nair added.