BSE and NSE are closed today in observance of Ganesh Chaturthi.

  • Aug. 31, 2022, 11:29 a.m.

The National Stock Exchange of India (NSE) and BSE will remain closed on August 31 for Ganesh Chaturthi.

Wholesale commodity markets, including metals and bullion, will also remain closed. There will be no trading in forex and commodity futures markets either.

The Indian indices quickly overcame bearish sentiments set in motion last Friday by the US Federal Open Market Committee. After the steep slide on Monday (August 29), the markets bounced back on Tuesday (August 30), the last trading day of the month.

The Sensex rose 1,564.45 points, or 2.70 percent, to 59,537.07, while the Nifty rose 446.40 points, or 2.58 percent, to 17,759.30.

"Massive short covering as well as value buying at lower levels helped indices recoup all the losses after the Jackson Hole event. "Nifty made smart gains on the last trading session of August to close at a record monthly closing of 17,759 as against the previous monthly closing high of 17,671 in October 2021," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

"With this, Nifty managed to increase 3.5 percent in August 2022 despite a record rise of 8.7 percent in July 2022. This shows the inherent strength in domestic markets amidst weak global cues. Mid and small caps continued to outperform, with gains of 6% and 5%, respectively, in August 2022.

"Nifty has crossed and closed above key short-term resistance levels. If it manages to sustain the positivity, we could see momentum towards the 18,000-18,200 zone while support levels have moved higher to 17,500-17,450. "Markets will remain closed on Wednesday on account of Ganesh Chaturthi," he added.

The top gainers on the Nifty were the Bajaj twins—Bajaj Finserv and Bajaj Finance—along with IndusInd Bank, Tech Mahindra, and Tata Motors, which each gained between 3.9 and 5.4 percent.

Among sectors, Nifty Realty shone the most, with gains of 3.49 percent, closely followed by financials, which gained 3.4 percent. The nifty IT, auto, metal, and FMCG indexes all gained more than 2%.

The BSE Midcap gained 1.9 percent, while the BSE Smallcap gained 1.4 percent.

"The equity indexes recovered significantly due to aggressive buying that emerged against the sharp fall in the markets the previous day. "The fact that growth in India would be higher, and that inflation may gradually moderate over time, has infused greater confidence in the minds of market participants," said Dr. Joseph Thomas, head of research at Emkay Wealth Management.

"Despite all this, the trajectory of the markets would be decided by the data and numbers coming out locally as well as from the US," he added.

On August 30, the rupee ended higher by 51 paise at 79.45 per dollar against Monday's close of 79.96.

"The rupee was one of the strongest currencies yesterday. On the downside, we could see more downside, possibly towards 79.25/30 levels on spot, on account of long liquidations, but once the positioning becomes light, we could see a dollar-rupee rebound due to the strong US Dollar Index. We expect a range of 79.25 to 79.85 on spot, "said Anindya Banerjee, vice-president, currency derivatives and interest rate derivatives, Kotak Securities.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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