Indian Stock Market Shows Resilience Amid Global Challenges Sensex Nears Record High

Market Update

New Delhi, India

September 13, 2023

Time: 2:00 pm

The Indian stock market exhibited remarkable resilience today, with the Sensex surging by 250 points and approaching its all-time high, despite facing headwinds from weak global market trends and foreign fund outflows.
The Sensex, a barometer of India’s stock market, continued its upward trajectory, providing a glimmer of optimism in an otherwise uncertain global economic landscape. While this rally was impressive, it was not without its challenges.
In early trade, the equity benchmark indices experienced a temporary dip, marking a pause to the Sensex’s eight consecutive days of gains. The main culprits behind this decline were the prevailing weak trends in global markets and fresh foreign fund outflows. These factors have introduced an element of caution among investors.

Several major companies listed on the Sensex witnessed divergent performances. Notably, laggards included industry giants such as ICICI Bank, Tata Consultancy Services, HCL Technologies, Asian Paints, Bajaj Finserv, and Infosys. On the other hand, companies like ITC, Titan, Power Grid, and UltraTech Cement made substantial gains.
Global markets painted a mixed picture, with Seoul, Shanghai, and Hong Kong reporting lower numbers, while Tokyo traded positively. The U.S. markets had closed in the red on the previous trading day, contributing to global economic uncertainties.
Furthermore, global oil benchmark Brent crude saw a modest increase of 0.20 percent, reaching USD 92.24 per barrel, which could have implications for India, a country heavily reliant on oil imports.
Foreign Institutional Investors (FIIs) continued their cautious stance, offloading equities worth Rs 1,047.19 crore on the previous trading day. This decision suggests that foreign investors are closely monitoring the evolving market conditions.
In terms of economic indicators, retail inflation in India decreased to 6.83 per cent in August, largely due to lower vegetable prices, although it remains above the Reserve Bank’s comfort zone. On a more positive note, India’s industrial production growth reached a five-month high of 5.7 per cent in July, driven by robust performances in the manufacturing, mining, and power sectors.

In Tuesday’s trading session, the BSE benchmark Sensex showed resilience, climbing 94.05 points or 0.14 per cent to settle at 67,221.13 points. However, the Nifty, while initially gaining, ultimately closed marginally lower by 3.15 points or 0.02 per cent at 19,993.20 points, reflecting the volatility in the market.