The Indian stock market has been trading rangebound over the last few sessions, with the benchmark Nifty 50 remaining between 24,800 and 25,660.
Since the start of the July F&O series on Friday, June 27, the Nifty 50 has traded within a narrow band, fluctuating less than half a per cent in either direction. Thus, after posting gains for two consecutive weeks, the index now appears poised to close this week in the red.
On Friday, July 4, the index opened at 25,428.85, up from its previous close of 25,405.30, and hit an intraday high and low of 25,458.65 and 25,370.55, respectively.
The Sensex opened at 83,306.81, up from its previous close of 83,239.47, and hit an intraday high and low of 83,441.95 and 83,102.55, respectively.
Why is the Indian stock market trading rangebound?
Experts pointed out the following five key factors that could be keeping the Indian stock market in a range. Let’s take a look:
1. Persisting uncertainty over the India-US trade deal
Perhaps the biggest factor which is keeping investors cautious at this juncture is the persisting uncertainty over an India-US trade deal.
US President Donald Trump on July 1 said that a deal between the two countries could be announced soon. However, there is no official announcement yet. On the contrary, reports suggest both countries are stuck on resolving key disagreements over US dairy and agricultural products.
(This is a developing story. Please check back for fresh updates.)