Muhurat Trading: Sensex, Nifty Dip Marginally as FPIs Return to India
Indian benchmarks end marginally lower in the Muhurat trading session as FPIs return to equities and earnings growth remains the focus.
The Indian stock market kicked off the new Samvat year with a quiet start. During the special Muhurat trading session on Sunday, the primary equity benchmarks ended marginally in the red, though the overall sentiment remains hopeful due to the return of foreign portfolio investors (FPIs) and positive expectations for corporate earnings.
The Numbers: A Slight Slide
The BSE Sensex began the auspicious session at 81,299.34 but closed at 80,999.40, marking a slim decline of 28.62 points, or 0.04 per cent. Similarly, the NSE Nifty 50 opened at 25,070.45 and settled at 24,986.40, dropping by 43.95 points, or 0.18 per cent.
Expert Outlook: Earnings Over Valuations
Despite the marginal dip, market expert Avinash Agarwal maintains a constructive outlook for the coming Samvat. However, he suggests that investors should expect more selective and moderate returns moving forward.
According to Agarwal, the primary catalyst for market performance will be actual earnings growth rather than an expansion in valuations. He emphasized that the market is likely to favor companies that possess:
- Strong fundamental strengths.
- Healthy balance sheets.
- Consistent and reliable cash flows.
Winners and Losers in the Nifty 50
The session saw a mixed bag of performances among the heavyweights of the Nifty 50.
The Gainers
Sun Pharmaceutical Industries led the charge, surging by 2.96 per cent. It was followed by Tata Steel, which rose 2.09 per cent, and ONGC, which gained 1.31 per cent. Other stocks that ended in the green included Adani Ports, Power Grid, Maruti Suzuki, Bharat Electronics, UltraTech Cement, and Eternal.
The Losers
On the flip side, SBI Life Insurance saw the biggest drop, declining by 1.11 per cent. IndiGo followed with a 1.07 per cent dip, while Bharti Airtel fell by 1.03 per cent. Max Healthcare and Infosys also ended lower, sliding 0.86 per cent and 0.83 per cent, respectively.
Sectoral Performance and Global Cues
Sectoral indices mirrored the mixed trend. The Nifty Media and Nifty Pharma sectors were the standout performers, rising 1.84 per cent and 1.70 per cent, respectively. Nifty Metal and Nifty Auto also saw modest gains of 0.36 per cent and 0.11 per cent.
Conversely, Nifty Realty struggled, declining by 0.66 per cent, and Nifty IT dipped by 0.33 per cent.
In the global commodities market, crude oil prices showed a downward trend. Brent crude was trading at USD 97.76 per barrel, down 0.54 per cent, while US crude oil declined 0.20 per cent to settle at USD 90.34 per barrel.
The FPI Factor
The Muhurat session comes on the heels of a strong rally in domestic equities from the previous week. This momentum was largely driven by a significant return of foreign investors. Data from the NSDL reveals that Foreign Portfolio Investors (FPIs) poured a substantial Rs 38,971 crore into Indian equities in just one week, signaling renewed confidence in the Indian market.