Foreign outsourcing, weak macros signals to keep investors sharp

Mumbai: Indian benchmark -Indices finished lower on Thursday after swinging between winnings and losses, while investors weighed the impact of the unexpected announcement of US President Donald Trump, who imposed 25% rates for Indian export to the US from 1 August.

NSE’s Nifty fell 86.7 points, or 0.35%, to close to 24,768.35. BSE’s Sesex fell 296.28 points, or 0.36%, to end at 81,185.58. Both indices had fallen almost 1% in early trading hours. The Nifty 50 had risen 0.4% intraday before the day ended lower.

“Despite the movement, there is no sign of panic among traders, because further escalation seems unlikely,” said Amit Khurana, head of shares on the Dolat Capital Market.

Nifty’s Volatility Index of Vix – popularly known as the anxiety meter for the market – won 3% to end at 11.54 levels, indicating an increased caution in traders.

Each rebound is likely to be confronted with obstacles in the absence of limited positive triggers, said Sriram Velayudhan, senior vice president, IIFL Capital Services.

“Rallies in the short term can experience resistance around 25,100-25,200 levels,” he said. “Investor sentiment will remain careful because of headwind such as weak income, causing rupees, uncertainty about a trade agreement and foreign movements.” The broad market indices also fell, with a Nifty Midcap 150 0.8% falling and a small small-cap 250 decreased by 0.9%. Of the total 4,153 shares that were traded on the Bombay Stock Exchange, 1,525 fell advanced and 2,502 Thursday.