Sensex, Nifty Expected to Continue Trading Under Pressure

MUMBAI, India – From the last trading week, benchmark Sensex and Nifty gave up some of its previous gains, ending Friday with significant losses.

On Monday, the major indices in the Indian stock market opened fairly optimistic but ended the trading day either flat or with modest losses. On shares listed under the NSE, 718 stocks were seen to advance, but 1,095 tracked losses, with 347 was mostly unchanged.

Both the Nifty and Sensex opened marginally higher, which was mostly boosted by heavyweights such as Bharti Airtel and Reliance Industries, following the announced tariff increase by the telecom companies of around 40% on Sunday.

However, a day following the announcement made by Yes Bank that it received investment interest from a couple of unnamed and somewhat shady investors, shares declined to around 6.22%.

On Tuesday, Sensex and Nifty opened the trading session marginally low, which continued throughout the day, with the major indexes closing the session with more losses. On shares under the NSE, 576 stocks recorded gains for the day, but 1,212 shares declared with losses at the end of the session, with 350 shares relatively unchanged.

Yes Bank shares have also declined Tuesday by around 7%, marking its third consecutive session of losses. The decline happened despite the $120 million commitment by the US-based Capital International to the bank, which suggests that market players were not convinced about the kind of investors who wants to offer money to the bank. It was also mostly because there are expectations that the Reserve Bank will most likely reject the offers of money injections.

Major indices also opened low during the trading session on Wednesday but recovered throughout the session to end the day with gains. 999 shares on the NSE recorded gains, while only 789 tracked losses, with 352 shares unchanged for the session.

On Thursday, Sensex and Nifty were volatile throughout the trading session, leaving the major indexes with losses to close the session. 778 shares listed under the NSE ended the day with advances, while 992 declared losses, with 370 stocks unchanged for the day.

Thursday’s trading open were positive for the major indexes, before the announced key monetary policy by the Reserve Bank of India. However, the unchanged repo rate has left the market jittery throughout the trading session.

On Friday, Senses and Nifty indexes suffered a correction, with shares mostly declining similar to its Monday sentiments. 525 shares on the NSE recorded gains, while 1313 shares declined, and 106 unchanged.