Nifty hits all-time high, Fed meet weighs on Street
Indian markets remained steady despite FPIs' absence. VIX fell by 86% post-election results, indicating reduced risk perception.
Indian ended higher on Wednesday with the closing at all-time highs, but gains were limited after early upsides fizzled out ahead of the US 's outcome late at night. The undertone remains positive, but the recent rally may be losing steam for now, said analysts.The Nifty rose 58.1 points, or 0.25%, to close at a high of 23,322.9. Earlier in the day, the index hit a record of 23,441.9. The rose 149.8 points, or 0.2%, to end at 76,606.5. The index fell 86 points short of its all-time closing high of 76,693.
Both indices have gained around 6.5% since the on June 4.
"The currently does not see any worry and is holding above the 23,000 levels because of , despite the lack of participation by FPIs," said Rajesh Palviya, head of technical and derivative research at Axis Securities.
The 23,400-zone has been a 'tough barrier' for the Nifty in the previous three trading sessions, said Vaishali Parekh, vice president - technical research at Prabhudas Lilladher.
"Nifty has witnessed a consolidation phase for the last three sessions and would need a decisive breach above to trigger for further rise in the coming days," said Parekh.
"The comments of the US Fed will be closely looked at by street participants and any indication about reversal of may give the indices a further boost," said Palviya.
At home, the rally on Wednesday was led by the media, PSU banks, and healthcare stocks.
Nifty's Midcap 150 gained 1% and Nifty Smallcap 250 rose 0.94%. Out of the total 3,991 shares traded on the BSE, 2,554 advanced and 1,336 declined.
The Volatility Index or VIX - a fear gauge of the market, fell 2.55% to 14.39 on Wednesday. It has declined almost 86% in the last one week since the election results, suggesting lower risk perception among traders.
Foreign portfolio investors net bought shares worth ₹426 crore. Domestic institutions were buyers to the tune of ₹234 crore.
Source: Stocks-Markets-Economic Times
