Indian Equity Market Update

February 27, 2024

The Indian equity market is expected to open on a negative note following gains in GIFT Nifty, which was trading lower at around 25,562.50.

Market Performance

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The Indian equity market failed to sustain its early gains and ended with little change in another volatile session. At close, the Sensex was down 27.46 points or 0.03% at 82,248.61, while the Nifty was up 14.05 points or 0.06% at 25,496.55. The Nifty Midcap index rose 0.6%, while the smallcap index ended flat.

Global Market Trends

Asian stocks edged lower from record levels after a decline in Wall Street benchmarks. The Dow Jones Industrial Average rose 17.05 points or 0.03% to 49,499.20, while the S&P 500 lost 37.27 points or 0.54% to 6,908.86 and the Nasdaq Composite lost 273.69 points or 1.18% to 22,878.38.

Currency and Commodities

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The dollar held steady to hover near three-week highs, making dollar-denominated gold more expensive for holders of other currencies. The US Treasury 10-year yield down marginally to 4.0% and the US Treasury 10-year yield slipped 1 basis point to 3.41%. Asian currencies were trading mostly lower in early trade, with the Taiwan Dollar leading the losers.

Commodity Prices

Oil prices fell on Friday and were on track for a weekly decline after the United States and Iran extended talks over the OPEC member's nuclear programme. Gold prices held broadly steady on Friday, with investors digesting the previous day's U.S.-Iran nuclear talks.

Fund Flow Action

On February 26, Foreign Institutional Investors (FIIs) turned net sellers, offloading equities worth ₹3,465 crore. Meanwhile, Domestic Institutional Investors (DIIs) extended their buying streak for the third consecutive session, purchasing equities worth over ₹5,000 crore.