February 18, 2024
Indian Stock Indices Dip Amid Profit Booking and FPI Selling
Finance Stock Markets Trading

Indian Stock Indices Dip Amid Profit Booking and FPI Selling

Indian Stock Indices Dip Amid Profit Booking and FPI Selling /ANI

Indian Stock Indices Dip Amid Profit Booking and FPI Selling

Indian stock indices experienced a marginal decline at the opening bell on Wednesday, extending losses from the previous session. This slight fall is attributed to ongoing profit booking activities combined with recent selling of shares by foreign portfolio investors (FPIs). At the opening, the Sensex stood at 70,874.21, down 265.69 points or 0.37%, while the Nifty was at 21,462.50 points, down 59.60 points or 0.28%. Among the Nifty 50 companies, 32 advanced, and 18 declined in the morning.

Foreign Selling and Profit Booking Pressures Markets

Foreign portfolio investors have been actively selling Indian stocks, turning net sellers in January 2024 after accumulating stocks in the preceding two months (November and December). FPIs sold Indian stocks worth Rs 23,929 crore in January, following their accumulation of stocks worth Rs 66,135 crore in December. This selling pressure, combined with domestic profit booking, has contributed to the current market scenario.

Anticipation Builds for Union Finance Minister’s Budget Proposals

With Finance Minister Nirmala Sitharaman set to present the interim union budget on Thursday, domestic investors are preparing for a dynamic week. The interim budget typically addresses fiscal needs during the intervening period until a new government forms after the Lok Sabha polls. Investors are keenly watching for any proposals related to the taxation of investments, particularly in the capital market. Additionally, macro-economic guidance and the outcome of the US Federal Reserve’s policy meeting are key factors influencing market sentiment.

Market Expectations Amid Global and Domestic Factors

“The Fed decision tonight and the interim Budget tomorrow will weigh on markets in the near-term. Global markets will be keenly watching the Fed comment on the timeline and quantum of rate cuts. The first rate cut is likely to come in June 2024,” commented VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The market is anticipating developments both globally and domestically, with traders advised to focus on stock selection amid the prevailing tone of indecisiveness.

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