Decoding Market Trends: Nifty IT Bleeds, Valuations, FII Inflows & More

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Decoding Market Trends: Nifty IT Bleeds, Valuations, FII Inflows & More

By Malvika Gurung

Investing.com -- Indian equity benchmark indices opened slightly higher on Wednesday, sliding to red thereafter within a few minutes of the market opening after a day’s pause, ahead of the US inflation data to be released later in the day.

At 11:58 am, headline gauges Nifty50 traded 0.11% lower and Sensex slipped 111.73 points or 0.19%, as losses in IT stocks weighed on the domestic market, while gains in metal and banking counters lent support.

Wall Street ended lower in the overnight session, dragged by growth stocks and tech companies, following a grim outlook from memory-chipmaker Micron Technology (NASDAQ: MU ). The tech-heavy index Nasdaq Composite plunged 1.2% on Tuesday. 

Tracking weak signals from US tech stocks’ overnight losses, the Nifty IT index declined 1.15% at the time of writing. Nifty Bank rose 0.13%.

Nilesh Shah of Kotak Mahindra (NS: KTKM ) AMC asks to focus on the valuations in the IT sector and believes it remains in the accumulation zone.

The ongoing rally in the Indian stock market is due to sharp rebounds witnessed in Wall Street from June lows. Nifty’s sharp rebound of 15.4% from the lows hit in June is a result of global trends, states Dr. V K Vijayakumar of Geojit Financial Services.

Further, the trend of incessant sell-offs by foreign investors from Oct 2021-Jun to 2022 has reversed in July 2022, as FIIs turned net buyers in the month, the momentum continuing in August too.

“FIIs have turned buyers mainly because the dollar has stopped appreciating and started depreciating. Sensex and Nifty are unlikely to surpass the previous highs because valuations have become expensive and, therefore, there will be selling pressure at higher levels,” noted Vijayakumar.

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  • Lucky Chap @Lucky Chap
    very poor article in middle of market hours, last paragraph written by you indicating your greed in wanting Indian market down poor one believe me
    Like 5
  • Lucky Chap @Lucky Chap
    very poor article in middle of market hours, last paragraph written by you indicating your greed in wanting Indian market down poor one believe me
    Like 1

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