Benchmark indices snap a six-day gaining streak and ended in the red with losses in financial services overshadowing the gains by information technology stocks.
On Thursday, Nifty50 closed flat at 17382, while Sensex settled 0.1 percent lower at 58298.8.
Jitendra Gohil, Head-India Equity Research, Credit Suisse Wealth Management told CNBC-TV18, “First of all, the setup for the past couple of months if you look at we have been mentioning that the market is pricing in too much of hawkishness and then fed turned a little bit soft in terms of their rate outlook and hence, we have seen some kind of pullback or buying interest has emerged”.
The other way we look at market is that India's fundamental story is excellent, he added.
“In fact, our peers are struggling while India's macroeconomic fundamentals have improved a lot and hence, we have been mentioning that India may demand higher PE premium and as we speak today, I think we are over 90 percent PE premium versus emerging market compared to history, historical average of 45 to 50 percent,” Gohil explained.
Stock Reactions
Shares of Hindalco Industries Ltd (Hindalco) rose as much as 5 percent on Thursday after the metal producer’s wholly-owned subsidiary Novelis Inc posted a strong financial performance in the first quarter of FY23 clocking a record EBITDA.
Whereas, Inflationary pressure was a key concern for the edible oil industry, Adani Wilmar said, adding that there has been some respite due to the softening of certain commodity prices. With this, Adani Wilmar shares fell 2 percent.
Vodafone Idea stock gave up its entire gain for the week after the earnings announcement, as the telecom company continued to lose market share to rivals. The telco stock shed 6 percent intraday today.
Redington (India) shares soared about 11 percent intraday after the IT product distribution company posted a strong quarterly performance.
CLSA has maintained its 'sell' rating on shares of Gujarat Gas and also trimmed its target price on the stock which triggered selling in the stock. Gujarat Gas shares tanked nearly 6 percent intraday.
Global markets
Nervousness over Nancy Pelosi's visit to Taiwan dissipated and as investors took cues from robust US data and earnings.
Most key European indices were in the positive territory while MSCI’s broadest gauge Asia Pacific ex-Japan was up 0.7 percent.
Meanwhile, S&P futures were flat indicating a tepid start for Wall Street.
(With inputs from agencies)
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