Shillong, September 22: Deepak Jasani, Head of Retail Research at HDFC Securities, reported that Nifty witnessed a significant weekly decline of 2.57 percent, marking the most substantial drop since the week ending February 20, 2023.
As per IANS, on September 22, Nifty exhibited a decline but displayed indications of forming a near-term bottom. A further drop below 19645 could potentially take Nifty to the range of 19460-19480, while any upward movements may encounter resistance around 19849 in the near term.
Nifty concluded the week with its fourth consecutive daily decline, closing down by 0.34 percent or 68.1 points at 19674.3.
Global markets faced downward pressure, and U.S. bond yields reached multi-year highs during the week, largely influenced by central bank meetings hinting at prolonged higher interest rates by the U.S. Federal Reserve. Additionally, market concerns included the growing possibility of a U.S. government shutdown within the next 10 days.
The Bank of Japan (BOJ) maintained its ultra-easy monetary policy with no alterations to its outlook.
Regarding global equity funds, there were outflows of $16.9 billion during the week ending September 20, as reported by EPFR Global data.
Vaibhav Vidwani, Research Analyst at Bonanza Portfolio, noted that most sectoral indices were in the red, with Nifty PSU Bank outperforming, showing gains of 3.51 percent. Notably, India is set to be included in JPMorgan’s Global Bond Index-Emerging Markets (EMs) starting from June 28, 2024, with India’s index weight capped at a maximum of 10 percent and qualifying government bonds valued at $330 billion.
Among the Nifty gainers were Power Grid, Asian Paints, Coal India, NTPC, and HDFC Life, while HDFC Bank, UltraTech, Dr. Reddy’s Laboratories (DRL), Wipro were among the top laggards.
