Promoters of companies listed in the Indian stock markets are steadily reducing their stakes, as high valuations and strong investor appetite provided an opportunity to liquidate holdings at elevated levels, according to a report by Motilal Oswal Financial Services.
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Buying enthusiasm picked up later in the session as the Sensex climbed 266.47 points to settle at 83,580.40 while Nifty 50 advanced 50.90 points to close 25,693.70. Among the sectors, PSU Bank, IT, pharma slipped while FMCG oil & gas, consumer durables, Private Banks, realty rose.
Indian stock indices settled lower on Thursday, with analysts attributing the decline to profit booking following the recent uptick after the announcement of the India-US trade deal.
The Indian stock markets entered a consolidation phase on Thursday, with benchmark indices Nifty and Sensex opening almost flat, while IT stocks remained under pressure and silver prices witnessed a sharp fall.
At the time of closing, Sensex was at 83,739.75, up by 2072 points or 2.5 per cent, while Nifty was at 25,727, up by 639 points or 2.5 per cent. In terms of sectors, all the major indices traded in the green.
With the India-US trade deal announced, foreign institutional investors (FIIs) are expected to make a comeback in the Indian stock markets, as trade-related uncertainties ease and positive signals emerge from the agreement.
Indian stock indices recovered on Monday, though not entirely, after the Budget day nosedive, partly due to value buying and weakening global crude oil prices.
The domestic equity benchmarks opened nearly flat but in green on Tuesday as investors remained cautious ahead of the much-anticipated India-European Union Free Trade Agreement (FTA), which is expected to be signed today.
Indian stock markets are closed on Monday on account of Republic Day celebrations, with trading remaining shut across both major stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
At the time of market closing, Sensex was up 397.74 points or 0.49% at 82,307.37 while Nifty was up 132.40 points or 0.53% at 25,289.90. Indian rupee ended higher at 91.62 per dollar against previous close of 91.7.