As the indices have been hovering around all-time high levels, many quarters of investors find valuation too stretched to buy. Many of them are looking for a correction to enter the market again. Investors should expect some volatile moves today as F&O contracts will expire at the end of the day.
How are the bluechips faring?
After opening in the green, benchmark indices maintained their lead. At 9.24 am, BSE flagship Sensex was up 166 points or 0.32 per cent to 52,472. NSE benchmark Nifty climbed 36 points or 0.23 per cent to 15,722.
In the 50-share pack Nifty,
was the biggest gainer, up 1.34 per cent. TCS, Infosys, L&T, Tata Steel, Tech Mahindra, Axis Bank, UltraTech Cement and HDFC Bank were among other gainers.
Hero MotoCorp was the top loser in the pack, down 0.65 per cent.
, Cipla, Eicher Motors, Tata Motors, NTPC, , SBI Life Insurance and Asian Paints were other losers in the pack.
FACTORS DRIVING MARKETS
Good news
Yields, dollar in control: Overnight, 10-year Treasury yields remained below 1.5% in muted trading. The dollar index held firm below an 11-week high against its rivals. This is mildly positive for Indian equities.
FII buying: Buying by institutional investors has been providing support to the market. Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 3,156.53 crore, data available with NSE suggested. DIIs turned buyers to the tune of Rs 1,317.2 crore, data suggests.
Bad news
Inflation here to stay: A period of high inflation in the United States may last longer than anticipated, two US Federal Reserve officials said, prompting one to pull forward his views on when the central bank should start raising interest rates.
US home sales down: Data on Wednesday showed sales of new US single-family homes fell to a one-year low in May as the median price of newly built houses soared amid expensive raw materials, including framing lumber.
Broader markets
Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 0.43 per cent, while Nifty Midcap rose 0.21 per cent. Broadest index on NSE, Nifty 500 advanced 0.22 per cent.
Godrej Agrovet, Godrej Industries, GMR Infra, IRB Infra, Amber Enterprises and APL Apollo were gainers from the space, while PNB Housing, NBCC, Sequent Scientific, Adani Total Gas, Dalmia Bharat and Apollo Tyres were under selling pressure.
Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1% to 695.2 points, off a one-month trough of 685.12 touched earlier this week. Japan’s Nikkei rose slightly to 28,905.5, while Chinese shares were in the red with the blue-chip CSI300 index off 0.3%.
On Wall Street, the Nasdaq closed at a record high on Wednesday, while other major US indexes ended lower alongside European stocks.
