The NSE Nifty 50 slipped 0.12% to close at 22,470.50, while the BSE Sensex edged down 0.10% to settle at 74,029.76 on Wednesday. Meanwhile, Asian markets saw an upswing after the latest U.S. inflation data hinted at possible rate cuts later this year.
Mixed Signals Dominate Domestic Markets
Indian stocks remained subdued, even as global markets showed optimism. Nifty 50 and Sensex both ended slightly lower, reflecting caution among investors.
The session started with promise, tracking gains from the Asia-Pacific region. But profit booking, especially in heavyweight sectors like IT and banking, kept indices under pressure.
One small silver lining? Midcap and smallcap indices managed to hold their ground, outperforming blue-chip peers.
- Nifty Midcap 100 rose by 0.4%.
- Nifty Smallcap 100 added 0.6%.
Global Cues Paint A Different Picture
Across Asia, stock markets rallied after U.S. inflation data came in softer than expected, fueling hopes that the Federal Reserve might ease interest rates sooner than anticipated.
Japan’s Nikkei 225 surged by 1.2%, while Hong Kong’s Hang Seng index climbed 1.5%. Even South Korea’s Kospi gained 0.8%, reflecting a generally upbeat sentiment.
The U.S. consumer price index (CPI) report showed inflation rose 0.4% in February — a notch below market predictions. That gave Wall Street a boost, with the S&P 500 closing 0.58% higher and Nasdaq adding 0.73%.
Sector Performance: Winners And Losers
While the broader market struggled, some sectors bucked the trend.
- Gainers: Pharma stocks saw strong buying interest, with Sun Pharma and Cipla rising over 1%. FMCG stocks also held steady.
- Laggards: IT stocks took a hit, with Infosys and TCS dropping more than 1%. Banking stocks, including HDFC Bank and ICICI Bank, also ended in the red.
Energy stocks saw mixed action. Reliance Industries managed slight gains, but ONGC fell after reporting weaker-than-expected quarterly earnings.
FII and DII Activity: Cautious Approach
Foreign Institutional Investors (FIIs) remained net sellers, offloading ₹1,247 crore worth of equities. Domestic Institutional Investors (DIIs), however, supported the market, purchasing ₹988 crore in shares.
This ongoing tug-of-war between FIIs and DIIs is keeping volatility high. Retail investors, meanwhile, are treading carefully, waiting for clearer signs on both global and domestic economic fronts.
Key Data To Watch
Investors now turn their attention to:
- India’s retail inflation data for February, expected later this week.
- U.S. Federal Reserve meeting next week, where comments on future rate hikes (or cuts) will likely steer global markets.
- Oil prices, which have been fluctuating, impacting both energy stocks and the rupee’s strength against the dollar.
Markets may stay range-bound in the near term, but any surprises — positive or negative — from inflation or interest rate guidance could cause sharp swings.
