Markets

Nifty closes higher for 5th day; gains 116 points at 19,727 levels

Despite weak global cues, market recovered in the second half on account of short covering on the weekly expiry day

September 7, 2023

Nifty above 19,700; capital goods, Banks, realty gain

Nifty closed higher for the fifth straight day with gains of 116 points (+0.6 percent) at 19,727 levels, Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, has said.

Despite weak global cues, the market recovered in the second half on account of short covering on the weekly expiry day, he said.

The broader market too ended in green with Midcap100/ Smallcap100 up 0.8 percent/ 0.5 percent. Banking and Realty were the major drivers with gains of more than 1 percent.

Nifty reversed early losses to end higher for the fifth session on September 7.

At close, Nifty was up 0.59 percent or 116 points at 19,727.1, Deepak Jasani, Head of Retail Research, HDFC Securities, said.

Volumes on the NSE fell compared to the previous session. The Midcap index rose more than the Nifty while Smallcap index rose less even as the advance decline ratio was up at 1.49:1.

Global equities mostly fell on Thursday as new signs of sustained inflationary pressures in the US and rising energy prices globally boosted the case for higher-for-longer interest rates.

European shares fell for a seventh consecutive session on Thursday, on track for their longest losing streak in more than five years, he said.

Risk aversion in the market as the stronger-than-expected services sector data from the US spooked fears about continued Fed interest rate hikes and woes over more US curbs on China and lingering sluggish Chinese economic data also pressured equity investments.

China reported on Thursday another monthly decline in imports and exports, albeit less steep than expected.

India’s consumer market is set to become the world’s third-largest by 2027 as the number of middle-to-high-income households rises, according to a report by BMI.

The report predicted that growth in India’s household spending per capita will outpace that of other developing Asian economies like Indonesia, the Philippines, and Thailand at 7.8 percent year-on-year, he said.

BMI estimates India’s household spending will exceed $3 trillion as disposable income rises by a compounded 14.6 percent annually until 2027.

By then, a projected 25.8 percent of Indian households will reach $10,000 in annual disposable income.

[With Inputs from IANS]

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