Equity markets ended higher in a volatile trade on Monday, with analysts predicting consolidation in the coming days. However, the broader market continued to underperform and remained subdued. In pre-market actions, GIFT Nifty on the NSE IX traded lower, indicating a negative start for Dalal Street on Tuesday. The short-term trend of Nifty remains positive, but a break below the support level could lead to further decline. India VIX, the measure of fear in the markets, rose slightly.
US stocks closed higher, led by megacap growth stocks like Alphabet and Tesla. Investors are also waiting for the outcome of the US Federal Reserve’s meeting this week. In Asian shares, authorities in Japan are expected to end the world’s last negative rates regime, which caused a marginal fall in market indices.
The yen remained steady ahead of a policy decision by the Bank of Japan, while the US dollar remained strong as bets for early rate cuts were trimmed. In the F&O ban list, companies like ZEE, ABFRL, Manappuram, RBL Bank, SAIL, Tata Chemicals, BHEL, Nalco, PEL, Balrampur Chini Mills, Biocon, and Hindustan Copper were identified as securities in the ban period.
Foreign portfolio investors were net sellers, while domestic institutional investors purchased shares. The rupee declined against the US currency due to the strength of the American dollar and concerns over global crude oil prices. The net short of FIIs in the market increased.
