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Stock indices in India closed Monday's trading marginally up but remained muted, after tasting lifetime highs last week.
At the closing, Sensex was at 82,989 points, up 0.12 per cent, and Nifty at 25,384 points, up 0.11 per cent. Nifty media was the top mover among the sectoral indices today at 1 per cent. Domestic stock indices had been rising substantially of late, possibly due to inherent strength in domestic market fundamentals. Continued buying by foreign portfolio investors (FPIs) also somewhat supported the stock indices. Foreign portfolio investors seemed to have upped their investments in India, hoping for a better return on investments amid high chances of interest rate cuts in the US. "The domestic market traded in a narrow range with a positive bias as the participants are keenly awaiting the FEDs decision this week," said Vinod Nair, Head of Research, Geojit Financial Services. "The weakness in the US job market and benign inflation are pointing at a slew of rate cuts on the table. The inflow of foreign money and an expectation of stability in domestic growth may keep sentiment optimistic," Nair added. Investors across financial markets, including in India, will look for fresh cues from the outcomes of the upcoming US monetary policy review meeting later this week, particularly the extent of interest rate cut, if any. The US Fed's next meeting takes place September 17-18. US Federal Reserve Chair Jerome Powell recently indicated that it was time for the US central bank to reduce interest rates as inflation rates aligned with its target. Addressing the much-awaited Jackson Hole Symposium last month, Powell said that "the time has come for policy to adjust" but stopped short of hinting at the quantum of interest rate cut. It is most likely that the US central bank will loosen its monetary policy, but investors are monitoring the extent of the cut - shallow or deep. Domestically, participants will also be closely monitoring wholesale inflation data. In line with the moderation in retail inflation, wholesale inflation in India too witnessed a sharp decline in July. "The Nifty index remained range-bound throughout the session as traders opted for caution ahead of a significant event...The trend continues to be strong, though with limited upward potential in the short term," said Rupak De, Senior Technical Analyst, at LKP Securities. (ANI)
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