Indian equity benchmarks close week in red on weak global cues

Continuing with the opening session losses, Indian equity benchmarks settled sharply lower on Friday, in line with the weakness in global markets.

Asian stocks fell over concerns that the US central bank and some other major central banks will have to raise interest rates even more aggressively to check inflation.

In India, the benchmark Sensex fell 866 points, or 1.6 per cent, to close the day at 54,836, and Nifty declined 271 points, or 1.6 per cent, to 16,411 points.

Among sectors, IT, metal, and realty indices fell 2-3 per cent.

“Markets managed to rebound amid the weak global setup which shows that bulls are not in the mood to surrender easily,” said Ajit Mishra, VP, Research, Religare Broking.

However, the real test would be to handle the volatility post the US Fed meeting, he said.

Meanwhile, the domestic factors like earnings and macroeconomic data would further add to the choppiness and it’s prudent to limit positions and continue with stock-specific trading approach.

Indian equity benchmarks declined sharply in opening deals on Friday, in line with weakness in global markets.

Asian stocks fell over concerns that the US’ central bank and some other major central banks will have to raise interest rates even more aggressively to check inflation.

All Nifty sectoral indices traded in the red in the morning session. Benchmark Sensex was at 54,666 points, down over 1,000 points or 1.9 per cent, whereas Nifty at 16,376 points, down over 300 points or 1.8 per cent.

“US non farm payrolls data and unemployment rate will be announced today which may decide the direction of global markets,” said Mohit Nigam, Head — PMS, Hem Securities.

Share of retail investors (individuals with up to Rs 2 lakh shareholding) in companies listed on NSE reached an all-time high of 7.42 per cent as on March 31, 2022 from 7.33 per cent as on December 31, 2021, as per Primeinfobase, an initiative of Prime Database Group.

In INR value terms too, retail holding in companies listed on NSE reached an all-time high of Rs 19.16 lakh crore from Rs 19.05 lakh crore on December 31, 2021, an increase of 0.56 per cent, according to Pranav Haldea, Managing Director, PRIME Database Group. sensex and Nifty rose by 0.54 and 0.63 per cent respectively during this period.

Despite share of High Net Worth Individuals (HNIs) (individuals with more than Rs2 lakh shareholding) in companies listed on NSE declining marginally to 2.21 per cent as on March 31, 2022 from 2.28 per cent on December 31, 2021, the combined retail and HNI share reached an all-time high of 9.64 per cent.

According to Haldea, net outflows from Foreign Portfolio Investors (FPIs) of a huge Rs1.10 lakh crore during the quarter resulted in FPIs share declining further to a 9-year low of 20.15 per cent as on March 31, 2022, from 20.71 per cent as on December 31, 2021.

Most notably, FPIs pulled out Rs 69,370 crore from Financial Services and Software sector during the quarter while investing Rs 13,450 crore in Metals & Mining and Food, Beverages & Tobacco. Holding of FPIs (in INR value terms) in companies listed on NSE stood at Rs 51.99 lakh crore as on March 31, 2022, a decrease of 3.36 per cent from Rs 53.80 lakh crore as on December 31, 2021.

According to Haldea, share of domestic Mutual Funds in companies listed on NSE rose for the third quarter running and reached 7.75 per cent as on March 31, 2022, up from 7.46 per cent as on Dec.31, 2021.

This was after 5 quarters of consecutive decline from March 31, 2020 (7.96 per cent) to June 30, 2021 (7.24 per cent).

The share has increased on the back of net inflows by domestic Mutual Funds of a huge Rs 67,423 crore during the quarter.

In INR value terms too, the holding of domestic Mutual Funds went up by 3.08 per cent to an all-time high of Rs19.99 lakh crore as on March 31, 2022 from Rs 19.39 lakh crore on December 31, 2021.

The share of retail, HNI and domestic Mutual Funds put together also reached an all-time high of 17.38 per cent as on March 31, 2022, up from 17.08 per cent as on Dec.31, 2021.