The Indian share market had a volatile day on April 3, 2024, as both the Sensex and Nifty closed lower, mainly due to a fall in financial stocks.
Investors were cautious as they observed declines in other Asian markets, fearing delays in interest rate cuts by the Federal Reserve. The market sentiment was influenced by concerns over the Federal Reserve’s decision-making, which impacted trading activities throughout the day.
The Nifty50 closed 0.08% down at 22,434.65, while the S&P BSE Sensex dropped marginally by 0.04% to finish at 73,876.82.
Asian markets experienced a 1% decrease, while European markets showed mixed performances, influenced by US economic data.
This data, which included information on the labour market and manufacturing, led investors to rethink expectations of rate cuts by the Federal Reserve starting in June.
Despite the overall subdued market sentiment, eight out of the 13 major sectors saw gains.
The information technology sector, in particular, recorded a 0.73% increase, supported by CLSA’s upgrades of key companies like TCS, HCLTech, and Tech Mahindra.
Shriram Finance topped the Nifty50 gainers list, surging by 3.67%, following reports of potential acquisition interest from Warburg Pincus for its housing finance unit.
Divi’s also performed well, with a 1.74% gain, after BofA upgraded its stock to “buy,” citing improved earnings prospects and attractive valuations.
However, consumer stocks faced declines of 0.43% amid concerns about earnings growth, with Nestle India being the top loser in the Nifty50, dropping by 2.6%.
Realty stocks, which had seen a 14.5% increase over the past eight sessions, experienced a 2.58% decline.
Adani Power, on the other hand, stood out by jumping 5% for the third consecutive session.