Stock markets remain volatile amid conservative growth forecast by Economic Survey
Indian benchmark indices experienced high volatility during the trading session on Monday as the economic survey presented a conservative economic growth forecast for the financial year 2024-25.
ANI
Jul 22, 2024 16:30 IST
New Delhi [India], July 22 (ANI): Benchmark stock market indices experienced high volatility during trading session on Monday as the Economic Survey presented a conservative economic growth forecast for the Financial Year 2024-25.
Both the indices faced selling pressure and closed with a marginal dip. The NSE Nifty 50 index closed with a decline of 21.65 points to 24,509 points and the BSE Sensex also declined by 102 points to 80,502 points by closing session.
Sector-wise, Nifty Realty, Nifty Consumer Durables, and Nifty Private Bank recorded losses, whereas Nifty PSU Bank and Nifty Pharma led gains.
"The conservative economic growth forecast for FY25, presented in the economic survey, has introduced some spikes in volatility ahead of the budget. Further, the below-estimated Q1 results from certain index heavyweights like RIL added to apprehensions of a slowdown in earnings growth in FY25. Although the budget is anticipated to be favourable, investors will closely monitor whether it continues to tickle traction, given high valuations and the risk of a downgrade in earnings" said Vinod Nair, Head of Research, Geojit Financial Services.
Shares of Reliance Industries declined by more than 3.4 per cent to Rs 3004 reacting on the financial results of the company that was announced on Friday.
Top gainers of the day on the Nifty 50 included NTPC, Grasim Industries, UltraTech Cements, HDFC Bank, and Power Grid Corporation, while Wipro, Kotak Mahindra Bank, Reliance Industries, SBI Life Insurance, and ITC were among the major losers.
The investors also focused on significant geopolitical developments, such as US President Joe Biden's decision to withdraw from the presidential race and endorse Vice President Kamala Harris, influencing market sentiment.
As per market experts, stock markets could be influenced by the following factors during the week. Finance Minister Nirmala Sitharaman is expected to present the Union Budget in Parliament on Tuesday. Also in the US, key economic data set to be released this week, including the Personal Consumption Expenditures (PCE) inflation index and the Q2 GDP estimate, that will offer insights ahead of the Fed's July meeting. (ANI)
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