New Delhi, January 20
Indian stock markets opened near the flatline on Friday – the last trading session of the week. At the time of writing this report, Sensex and Nifty were largely steady.
On Thursday, the key stock indices – Sensex and Nifty — declined after trading in the green for two straight sessions.
The subdued market sentiment in 2022 is largely due to the possibility of a global economic growth slowdown this year and the latest pulling out of funds by foreign portfolio investors (FPIs) from Indian stocks. Though, pulling out of funds has somewhat slowed this week.
Foreign portfolio investors (FPIs) have sold assets worth about Rs 15,828 crore in Indian stock markets so far in 2023, the latest data from National Securities Depository showed.
However, a sharp downside in the indices was capped, partly due to a decline in both retail and wholesale inflation in the country.
India’s wholesale inflation based on the Wholesale Price Index for the month of December 2022 was at 4.95 percent (provisional), against the previous month’s 5.89 percent. In October, it was at 8.39 and has been falling since then.
Notably, the wholesale price index (WPI)-based inflation had been in double digits for 18 months in a row till September.
Similarly, India’s retail inflation during the month of December was at 5.72 percent. It was 5.88 percent in November from 6.77 percent in October. Retail inflation in India had remained above 6 percent till October for over three quarters, which was beyond RBI’s comfort zone.
Further, for fresh cues, investors would keep an eye on the upcoming Union Budget for 2023-24, slated to be presented on February 1. Also, foreign investors’ sell-off trend will be on the market participants’ watchlist.
(ANI)
