Stock Market Today: The markets experienced a wild ride on Friday as a result of the Reserve Bank of India’s (RBI) hawkish monetary policy, which sparked a struggle between bulls and bears. Although inflation expectations for the fiscal year 2022–2023 (FY23) were maintained after three consecutive rate hikes, bears attempted to pull the indices while the bulls had ammo thanks to an in-line repo rate boost of 50 basis points.
The S&P BSE Sensex fluctuated overall throughout the day within a band of 405 points, reaching highs of 58,649 and lows of 58,244. The index increased 89 points or 0.15 percent to close at 58,388. On the other side, the Nifty50 ended 16 points, or 0.09 percent, higher at a level of 17,397.
Mahindra & Mahindra, Reliance Industries, and Maruti Suzuki were the biggest losers, while UltraTech Cement, ICICI Bank, and Bharti Airtel were the top gainers. 1807 of the shares are up, 1,466 are down, and 144 are remaining steady.
Power and auto indices among the sectors experienced over 1% declines each, while financial and IT names experienced purchasing.
“Markets remained range bound for yet another session and closed practically unaltered despite mixed indications,” said Ajit Mishra, VP of Research at Religare Broking. The benchmark attempted to build strength as the session got off to a flat start, but as the day went on, profit-taking at the higher levels limited the upward movement. After the outcome of the MPC meeting, which was in line with market expectations, it remained erratic until the very end. Finally, the Nifty finished the erratic day flat. The sector front continued to show a mixed trend, with IT, FMCG, and financials doing better than auto, energy, and media.
“With no significant event scheduled soon, earnings and global cues for direction would be the main areas of attention. The index is undergoing a time-wise correction at the moment and is holding somewhere near the top band of the consolidation range. The trend would restart if there were a clear break over 17,400; else, consolidation might continue. Focus more on stock selection and overnight risk management because we’re witnessing rotational purchasing across sectors, Mishra advised.
Following Wall Street’s tech gains, Tokyo stocks rose on Friday, but more companies acknowledged that increasing raw material costs were hurting their bottom lines. The broader Topix index was up 0.30 percent, or 5.77 points, at 1,936.50, while the benchmark Nikkei 225 index opened unchanged before rising 0.23 percent, or 65.06 points, to 27,997.26.
The major Wall Street indexes finished with mixed results on Thursday as advances in high-growth sectors outweighed losses in energy shares. Investors are anticipating the monthly jobs report for guidance on the Federal Reserve’s rate-hike schedule.