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.
The domestic equity markets entered a consolidation phase on Wednesday after the recent rally driven by the India-US deal, with indices opening flat but registering modest gains amid returning foreign inflows.
Indian stock indices settled higher on Tuesday, extending gains from the previous session, with analysts attributing it to the interim trade deal with the US, the possible return of foreign institutional investors, and positive cues from other Asian markets.
The share market in the country witnessed a turnaround with a positive opening continuing on Tuesday, as foreign inflows returned to domestic markets and investor sentiment remained upbeat.
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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.
Domestic stock markets witnessed a return of selling pressure on Wednesday morning as global cues turned weak following a fresh escalation in tensions in the Middle East and sharp selling in big technology stocks in the United States.
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.