FPIs sell Friday’s bounce, mkts to remain volatile
MUMBAI : Stocks rebounded on Friday, snapping three straight days of losses, ending the session in the green. However, the markets ended lower for the second consecutive week. Foreign portfolio investors (FPIs) capitalized on the bounce, selling shares worth a provisional ₹556.32 crore, while domestic institutional investors (DIIs) bought shares worth a provisional ₹366.61 crore.
Analysts expect market volatility to persist next week with the Reserve Bank of India’s monetary policy committee meeting from 8 to 10 August. The benchmark Nifty and Sensex indices ended up 0.7% each, with the Nifty gaining 135.35 points to close at 19,517 while the Sensex gained 480.57 points at 65,721.25. However, both traded below their peaks of 20 July, with Nifty at Friday’s close trading 2.37% below its record 19,991.85 and the Sensex trading 2.8% below its record high of 67,619.17.
“Domestic equities saw some respite after witnessing selling pressure for three consecutive days on the back of India’s services activity rising sharply to 62.3, its highest in 13 years, fuelled by strong demand," said Siddhartha Khemka, head of retail research at Motilal Oswal. “Next week would be crucial from the domestic point of view as RBI is set to announce its interest rate decision. Thus, markets are likely to move in a broader range with some volatility.
Interest-sensitive sectors are expected to remain in focus." Banks and autos are among the rate-sensitive stocks likely to be in focus next week. “After the sharp selling during the week, the Nifty did manage to reverse some of the losses on the last trading session of the week," said Jatin Gedia, a technical research analyst at Sharekhan by BNP Paribas. “However, it has closed in the red down for the
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