Mumbai – Indian stock markets displayed minimal movement on Friday, mirroring a pause in the global equities rally. The Sensex saw a slight increase, while the Nifty approached the 24,800 level. This stagnation comes as investors await a critical speech from Federal Reserve Chair Jerome Powell, anticipating insights into potential U.S. interest rate cuts in September that could impact global financial markets.
At the start of trading, nine out of 13 major sectors experienced declines. Despite these shifts, small- and mid-cap stocks, which are generally more sensitive to domestic economic conditions, remained relatively stable.
In a significant development, Public Sector Undertaking (PSU) stocks, which had recently delivered strong returns, are showing signs of slowing momentum. The impressive turnaround in PSU banking stocks—recovering from losses of ₹87,000 crore in FY 2018 to profits of ₹1.41 lakh crore in FY 2024—appears to be losing steam. Nevertheless, Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the sector’s valuation remains attractive despite the recent deceleration.
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