Sensex and Nifty See Early Declines, Followed by Mixed Performance
The Indian equity markets opened on a lower note on Friday, with both the Sensex and Nifty experiencing declines in early trade. The Sensex witnessed a drop of 404.84 points, equivalent to 0.56%, settling at 72,236.35, while the Nifty hovered around 21,903 after a decline of over 100 points.
Tech Stocks Lead Decline in Sensex, While Some Sectors Show Resilience
Among the major losers in the Sensex were tech stocks such as HCL, Wipro, Infosys, Tech Mahindra, and TCS. However, certain sectors showed resilience, with companies like Sun Pharma, Titan, Bharti Airtel, Nestle India, and ITC trading in the green.
The previous trading day saw the Sensex surging by 539.50 points or 0.75% to settle at 72,641.19, driven by optimism following the US Fed’s announcement of a potential rate cut. Throughout the day, it recorded a significant surge of 780.77 points or 1.08%, reaching 72,882.46. Similarly, the Nifty climbed by 172.85 points or 0.79% to reach 22,011.95.
Global Markets Display Mixed Trends with US Stocks Hitting Record Highs
Asian markets commenced trading on a lower note, with the MSCI Asia ex-Japan index dropping by 0.9% following a previous gain of 1.82%. However, Wall Street witnessed gains as the Fed-led rally persisted. The three major US stock benchmark indices achieved record closing highs for the second consecutive day, buoyed by the Federal Reserve’s hints regarding potential rate cuts. Fed Chair Jerome Powell reiterated the gradual decline of inflation towards 2%.
Chip Stocks Surge Following Positive Forecasts
Micron Technology’s positive forecast acted as a catalyst for chip stocks, with the Dow Jones Industrial Average closing less than 1% shy of 40,000 for the first time. Micron Technology experienced a surge of over 14% following an all-time high, driven by a surprise quarterly profit and a third-quarter revenue outlook exceeding expectations. Broadcom’s shares rose by 5.6% after TD Cowen upgraded its rating to ‘outperform’, contributing to the positive momentum. Nvidia also recorded gains of over 1%, while the Philadelphia Semiconductor index surged by 2.3%.
Semiconductor Sector Leads Market Rally
According to Matthew Miskin, Co-Chief Investment Strategist at John Hancock Investment Management, earnings results are propelling semiconductors as market leaders. However, Miskin expressed concerns regarding the Fed’s optimism regarding inflation and rate cuts.
Economic Indicators Uplift Investor Sentiment
Economic data released on Thursday provided further encouragement to investors, with a decrease in unemployment claims and a notable rise in home sales in February. The Dow Jones Industrial Average climbed by 0.68%, the S&P 500 by 0.32%, and the Nasdaq Composite by 0.20%. Industrial sectors led gains, while communications services faced a slight decline.
Mixed Performances from Key Players
Goldman Sachs led the Dow’s surge with a 4.4% increase, while Apple witnessed a 4.1% dip following an antitrust lawsuit. Accenture’s shares plummeted by 9% due to reduced revenue forecasts amid economic uncertainties. Reddit made its debut on the NYSE, closing at $50.44, surpassing its initial public offering price.
Positive Trends Continue on NYSE and Nasdaq
Market performance on the NYSE and Nasdaq displayed positive trends, with more advancing issues than decliners. The S&P 500 and Nasdaq reported new highs and lows, with total shares exchanged on US exchanges showing a slight decrease compared to the 20-day average.
Overall, Wall Street’s upbeat momentum continues, driven by positive market indicators and investor optimism.
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