Steel stocks were in special demand after Tata Steel reported its numbers. Banking stocks were trading with cuts, putting pressure on the indices.
“Sectoral rotations are happening and likely to accelerate, going forward. Pharma was a darling of the market in 2020 when the pandemic was raging. This year the economy facing segments like banking, autos, cement, metals and capital goods are likely to do well. IT, of course, is on a strong wicket,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Factors driving markets
- Stimulus is coming: U.S. President Joe Biden said on Tuesday he agreed with a proposal by Democratic lawmakers that would limit or phase out stimulus payments to higher-income individuals as part of his $1.9 trillion coronavirus relief bill.
- Job creation slow: US layoffs eased in December and job openings increased modestly, suggesting the decline in employment was largely due to companies cutting back on hiring amid uncertainty caused by a raging COVID-19 pandemic.
How bluechips are doing
After opening in the green, benchmark indices were volatile. At 10.44 am, BSE flagship Sensex was down 275.67 points or 0.54 per cent at 51,053.41. NSE benchmark Nifty followed, and dropped 79.50 points or 0.53 per cent to 15,029.80.
In the 50-share pack Nifty, SBI Life Insurance was the biggest gainer, up 2.69 per cent. HDFC Life Insurance, Bajaj Finserv, UltraTech Cement, GAIL, Tata Steel, Cipla and Grasim Industries were among other gainers.
