As the new futures and options series begins, volatility levels have also cooled off. Drop in dollar and yields also signify traders are ready to take more risks and move towards equities.
How are the bluechips doing?
After opening in the green, benchmark indices gained after dipping briefly. At 9.40 am, BSE flagship Sensex was up 121 points or 0.23 per cent to 52,774.76. NSE benchmark Nifty gained 32 points or 0.21 per cent to 15,811.10.
“Given the low VIX environment, it was important to take down key resistances to maintain momentum. This is something Nifty failed to do yesterday on approach to 15,810, reducing the chances of an upside-gapped opening today. The soft opening thereof today would attract bargain hunting in the 15735-15700 with an eye on 15890-970, but a slippage into the 15700-650 region could mean that 15767 will end up as a lid for the day,” said Anand James, Chief Market Strategist at Geojit Financial Services.
In the 50-share pack Nifty,
was the biggest gainer, up 8.16 per cent. HCL Tech, , Adani Ports, , HDFC, Dr Reddy’s Labs and Divi’s Labs were among other gainers.
SBI Life Insurance was the top loser in the pack, down 1.66 per cent. Bajaj Finserv, Grasim, IndusInd Bank, Bharat Petroleum, Hindalco, Axis Bank and SBI were other losers in the pack.
FACTORS DRIVING MARKETS
China soothes investors: Reassurances from Chinese regulators and official media have helped soothe investors’ nerves as have statements from the US Federal Reserve that its bond-buying programme will remain unchanged for now.
US dollar: While the dollar index tried clawing up from a one-month low early on Friday, it was headed for its worst weekly performance since May. After the Fed meet, money has been moving to equities, taking a toll on the dollar.
DII buying continues: Even as FIIs have been selling in July, buying by domestic investors have provided some support. On Thursday, DIIs were net buyers of equities to the tune of Rs 2,046.96 crore, data suggests.
Broader markets
Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 0.48 per cent, while Nifty Midcap climbed 0.23 per cent. Broadest index on NSE, Nifty 500 was up 0.14 per cent.
Bharat Dynamics, Quess Corps, Karur Vysya, Deepak Nitrite, TVS Motor and Concor were gainers from the space, while Oberoi Realty, Ajanta Pharma, Laurus Labs, JK Lakshmi Cement, APL Apollo and PNB Housing were under selling pressure.
Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.84 per cent, taking its losses for the week to more than 6.5 per cent. Japan’s Nikkei dipped 1.71 per cent, set for an 11th straight month of falls on the last trading day in the month.
Chinese blue-chips fell 0.96 per cent, and Hong Kong’s Hang Seng fell 1.27 per cent, with tech stocks once again dragging. The Hang Seng Tech index deepened its losses for the week to more than 17 per cent. Seoul’s Kospi was last down 0.94 per cent on the day.
