After suffering losses for the last two consecutive sessions, the Indian stock market witnessed mild buying interest in the morning session on Friday, 28 August, with the benchmarks, the Sensex and the Nifty 50, rising up to half a per cent in the morning session.
The gains were broad-based, with the mid- and small-cap indices on the BSE also rising by up to 0.50% during the session.
Meanwhile, as many as 12 stocks in the BSE 500 index had hit their record levels by 11:30 AM on Friday. Overall, nearly 150 stocks hit their 52-week high in intraday deals on the BSE.
Stocks at record high in BSE 500
By 11:30 AM on Friday, some 17 stocks had scaled their 52-week highs in the BSE 500 index, among which 12, including Welspun Corp, Piramal Finance, and Divis Laboratories, jumped to their record highs.
Other stocks in the index that hit their all-time highs were: Aether Industries, Ather Energy, Bosch, Craftsman Automation, Laurus Labs, PTC Industries, Sai Life Sciences, Shyam Metalics and Energy, and Solar Industries India.
The Indian stock market outlook
The Sensex and the Nifty traded with modest gains around 11:30 AM ahead of the Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium later today.
While Warsh is unlikely to offer major cues on the September policy meeting, his views on current macroeconomic trends amid stalled US-Iran talks will be in focus.
Crude oil prices eased on profit-taking, but they remain highly volatile, keeping the risk of an inflation flare-up alive.
Brent crude has again surged above $89, with no signs of any diplomatic solution to reopen the Strait of Hormuz. Total lack of clarity on this issue is weighing on the market. Meanwhile, the AI trade continues to boom, driven by strong results and guidance from Nvidia. Bond yields in the U.S. remain firm amid inflation concerns. All these factors have been weighing on the Indian market, keeping the Nifty within the 24300 – 24600 range,” noted V K Vijayakumar, Chief Investment Strategist, Geojit Investments.
Vijayakumar believes the index may break out above the range only if some of the index heavyweights, such as HDFC Bank, RIL, L&T, and the IT majors, participate in the rally.
However, Vijayakumar added that for this to happen, the major headwinds of elevated crude price and high U.S. bond yields have to disappear or at least weaken.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
