Indian equities rose by 1% on Friday as a decline in commodity prices worldwide improved market sentiments. The benchmark indices, however, ended the week in the red.
Foreign institutional investors (FIIs) continued to remain bearish and sold shares on Friday. According to BSE?s provisional estimates, FIIs were net sellers to the tune of R181 crore, while domestic institutional investors bought shares worth R398 crore. FIIs have sold shares worth $1.7 billion this month and worth $0.78 billion in the year till date.
On Friday, the BSE Sensex rose 184.69 points or 1.02% to close at 18,326.69 while the broader Nifty of the National Stock Exchange (NSE) was up 58.2 points or 1.07% at 5,486. ?The market was getting oversold and there was a bounceback,? said Andrew Holland, CEO ? Equities, Ambit Capital.
It was a tumultuous week for the market. The market retreated 1.11% this week and is down about 11% this year. High inflation and rising interest rates could still impact sentiments going forward.
?The month of June is going to be better than May as there are fewer headwinds,? added Holland. According to him, the Fed is unlikely to tighten rates going forward, which could impact the markets positively worldwide. ?However, there?s likely to be a slow, anaemic growth in the Western world going forward. So commodity prices are likely to cool and this should have a positive impact on the Indian markets,? he said.
The performance of the key benchmark equity indices in Asia Pacific was mixed. Kospi, Jakarta Composite and Hang Seng Index rose 0.7%, 0.34% and 0.16%, respectively. Nikkei 225, Straits Times and Shanghai Composite all declined moderately by less than 0.2%. The Bank of Japan maintained on Friday that the economy will pick up during the year.
Back home, of the 30 Sensex stocks, 27 ended higher while 3 ended in the red. In the broader market, breadth was moderate on the BSE with 52%, or 1534 advances, compared with 1286 declines. Most of the BSE sectoral indices ended in the green, with Consumer Good and Auto advancing the most at 2.3% and 1.3%, respectively. The FMCG index retreated the most at 0.8%.
The NSE cash turnover on Friday was at R10,184 crore, while the six monthly daily average is R12,866 crore. Turnover in derivatives was R1.45 lakh crore and the daily average for the past six months is R1.31 lakh crore.
India VIX, a volatility index based on the S&P CNX Nifty index option prices, declined 4% to 19.4. VIX is a measure of the market’s expectation of volatility over the near term and in general increases when the market is bearish and decreases when the market is bullish.