Taking Stock: The Sensex continues to decline for a fourth consecutive day, with the Nifty falling below 19,700.:- JPMorgan, earlier today, made the exciting announcement that India will be included in its Government Bond Index-Emerging Markets (GBI-EM) global index suite starting from June 2024. This decision is expected to have a significant positive impact on the Indian market by bringing in a substantial amount of liquidity.
The inclusion in this prestigious index is a testament to India’s growing importance in the global financial landscape, and it opens up new opportunities for investors and businesses alike. The increased liquidity will enhance market efficiency and provide a boost to economic growth in India. It’s truly a remarkable development that will benefit not only the Indian market but also the global investment community.
Market breadth also favoured declines as about 1,747 shares rose, 1,779 shares fell and 143 were unchanged
The bulls were not uplifted by the addition of Indian bonds to the JP Morgan index as the benchmark indices continued to drop for another session, extending the losses to a fourth consecutive day on September 22. It was announced earlier in the day by JPMorgan that India will be included in its Government Bond Index-Emerging Markets (GBI-EM) global index suite from June 2024.
This inclusion is expected to bring a significant amount of liquidity to the Indian market and make it more cost-effective for corporates to raise funds. The Sensex ended the day 0.33 percent lower at 66,009.15, a decrease of 221.09 points, while the Nifty was down 0.34 percent at 19,674.30, a decline of 68 points. Market breadth also favored declines, with 1,779 shares falling, 1,747 shares rising, and 143 remaining unchanged.
Amol Athawale, Vice President – Technical Research at Kotak Securities Ltd., mentioned that while the valuations in the Indian market have become expensive, there are other bigger concerns that are impacting the sentiment. These concerns include the rise in crude oil prices, the strength of the US Dollar index and treasury yields, and the continuous selling by foreign institutional investors. It is important to recognize these factors and remain supportive in order to navigate the current market conditions.
The broader market indices had a mix of results, with the Nifty Smallcap 100 increasing by 0.26 percent and the Nifty Midcap 100 declining by 0.11 percent. The BSE 500, which is the broadest index on the NSE, also fell by 0.25 percent.
Except for the Nifty PSU Bank and Nifty Auto, which saw increases of 3.51 percent and 0.21 percent respectively, all other sectoral indices closed with decreases. The Nifty Healthcare index was the biggest loser, down by 1.59 percent, followed by the Nifty Pharma index.
IndusInd Bank emerged as the top gainer among the Nifty 50 stocks, with a remarkable increase of 2.86 percent. Maruti Suzuki also experienced a boost due to positive brokerage notes. SBI, M&M, and Asian Paints were among the other stocks that saw significant gains.
Unfortunately, Wipro faced a setback, with a decline of 2.44 percent. This decline was triggered by the resignation of its chief financial officer.
It’s important to remain supportive during such times of volatility, as the market can fluctuate. Nevertheless, it’s crucial to stay informed and make strategic decisions to navigate through these ups and downs. Keep an eye on the market trends and seek expert advice if needed. Remember, investments are a long-term game, and with proper research and analysis, one can make informed decisions for a successful financial journey. Keep the faith and stay positive!