Mumbai Investors sold shares of information technology and pharmaceutical companies in the domestic capital market for the second consecutive day on Thursday, amid deepening concerns of a global recession. As a result, major capital markets indices, which were in positive territory in the morning session, ended the second half of the day with a major downside, taking a negative turn.
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The BSE Sensex opened the day’s high at 60,676.12 on a positive note in Thursday’s session on the back of gains in capital goods and auto manufacturing stocks. However, it finally settled down 412.96 points or 0.68 per cent at 59,934.01.
On the other hand, the national stock market index Nifty maintained the 18,000 level in Wednesday’s session. The index ended 0.7 percent lower at 17,877.40, down 126.35 points.
In contrast to the positive cues in the global market, investors in the domestic capital market preferred profit making. Shares of IT and pharmaceutical companies fell due to the global recession. On the other hand, small-cap and mid-cap stocks, representing the broader market, helped the market recover from a potentially major downtrend.
As the rate of inflation in the United States remains higher than expected, a major increase in interest rates is expected from the central bank, the Federal Reserve. As a result investors across the world, including the US, are currently in a ‘wait and watch’ situation, said Vinod Nair, Head of Research, Geojit Financial Services.
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Foreign institutional investors (FIIs) sold shares worth Rs 1,397.51 crore in the domestic capital market in Wednesday’s session. In the current month of September, FIIs have bought shares worth over Rs 5,000 crore so far in the domestic capital market.
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