Benchmarks closed flat on Wednesday as losses in financial stocks eroded gains in tech stocks.
The NSE Nifty 50 Index finished up 0.06% to 16,634.65, while the Sensex was down 0.03% to 55,944.21. (Photo: Reuters)
Blue-chip Indian stock indices retreated from record highs to end flat on Wednesday after a moderate start to trading among their European counterparts, with losses in domestic financials offsetting gains in technology and metallurgical companies.
The NSE Nifty 50 Index finished up 0.06% to 16,634.65, while the Sensex was down 0.03% to 55,944.21. The indices had reached life highs of 16,712.45 and 56,198.13 earlier in the session.
India’s benchmarks have flirted with record highs in recent months over plentiful liquidity and the reopening of some states after coronavirus restrictions eased, but analysts have warned domestic market recovery may not be sustained .
“We’re outperforming other emerging markets, and that’s because retailer participation in the market is at a level unimaginable just a few years ago,” said AK Prabhakar, head of research at IDBI Capital.
Indian markets have outperformed their Asian counterparts this year, with the Nifty 50 gaining nearly 19% and the Sensex gaining around 17% through Wednesday’s close.
A Reuters survey of analysts showed the country’s liquidity-driven stock rally is expected to slow down next year as global and domestic monetary policies begin to tighten.
On Wednesday, Tata Motors gained 1.64%, while Tata Steel lost 1.03% and Asian Paints lost 0.26%.
The Nifty IT sub-index ended up 0.73%, while the Nifty Pharma index ended down 0.33% and the Nifty Bank index was down 0.35%.
Markets around the world were waiting on Friday, when Jerome Powell, chairman of the U.S. Federal Reserve, was scheduled to speak at the annual Jackson Hole event, amid concerns over the Federal Reserve’s waning stimulus in the he era of the pandemic has abated.
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