1. Financials weigh on Indian markets amid spike in volatility

Financials weigh on Indian markets amid spike in volatility

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2 min read • Updated: February 5, 2024, 5:52 PM

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Summary

Both indexes rose about 0.5% each during the session, before reversing gains in the final hour of the trading session.

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The Nifty volatility index rose 6.26% to hover around its 10-month high.

Bengaluru, 5 February: Indian shares succumbed to selling pressure in a volatile session, as a pullback in financials after a recent rally weighed and fading hopes of an early U.S. rate cut also hurt sentiment.

The NSE Nifty 50 index fell 0.38% to 21,771.70, while the S&P BSE Sensex settled 0.49% lower at 71,731.42.

Both indexes rose about 0.5% each during the session, before reversing gains in the final hour of the trading session.

The Nifty volatility index rose 6.26% to hover around its 10-month high, hit on Jan. 30.

Financial services, the highest weighted of the 13 major sectoral indices, fell 0.58%. It had gained 1.7% in the previous week, its best in two months.

Meanwhile, fading hopes of early rate cuts in the US, on the back of strong labour market data and weakness in China's market, dragged Asian equities down.

On the other hand, auto stocks gained 1.21%, led by Tata Motors, which surged 5.47% to a record high after reporting a more than two-fold rise in December-quarter profit.

Oil and gas stocks gained 1.44%. Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd and Indian Oil Corporation extended their post-results rally, rising between 2.9% and 7%.

Agriculture chemicals maker UPL tumbled 11.18% on weak quarterly results. One 97 Communications slumped further after a regulatory crackdown, dropping 10%.

(The story has been published from Reuters without any major changes)