An important development in the banking space is HDFC Bank bouncing back smartly. HDFC bank has the potential to regain its leadership position. Meanwhile, smart money (FIIs) continue to be on the sell mode. DIIs and retail investors continue to be exuberant about the rally regardless of valuations, said an analyst.
“The Jackson Hole Symposium and the Fed chief’s commentary expected on 27 August will be keenly watched by global markets. If the Fed commentary indicates an earlier-than-expected tapering, FIIs are likely to press further sales. Investors may wait and watch,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
How are the bluechips doing?
After opening in the green, benchmark indices maintained their lead. At 9.17 am, BSE flagship Sensex was up 142 points or 0.25 per cent to 55,101 after hitting fresh record high. NSE benchmark Nifty rose 41 points or 0.24 per cent to 16,665.
In the 50-share pack Nifty,
was the biggest gainer, up 2.11 per cent. Hindalco, Bajaj Finserv, HDFC Life Insurance, , L&T, NTPC, JSW Steel and Adani Ports were among other gainers.
Titan was the top loser in the pack, down 1.14 per cent.
, , Divi’s Labs, HCL Tech, Sun Pharma, Dr Reddy’s Labs, Bajaj Auto and HUL were other losers in the pack.
FACTORS DRIVING MARKETS
Good news
US markets rally: All three major US stock indexes gained with the Nasdaq and S&P 500 closing at all-time closing highs. It was also S&P 500’s 50th record high close this year. This is likely to encourage traders on Dalal Street.
Full approval to vaccine: The US Food and Drug Administration granted full approval to the Covid-19 vaccine developed by Pfizer and BioNTech, in a move that could accelerate inoculations in the United States.
Dollar under pressure: The improved risk sentiment kept the dollar under pressure, leaving it hobbled near a one-week low versus major peers on Wednesday. Meanwhile, the yield on the benchmark 10-year Treasury notes rose to 1.3019 per cent, their highest since Aug.13.
Broader markets
Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 0.70 per cent, while Nifty Midcap added 0.68 per cent. Broadest index on NSE, Nifty 500 was up 0.38 per cent.
Vakrangee, Blue Star, NBCC, Adani Total Gas, Hindustan Aeronautics and Godrej Agrovet were gainers from the space while Canara Bank, Hindustan Zinc, Concor, CDSL, SpiceJet and Chambal Fertilisers were under selling pressure.
Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan was last off slightly, but still up 3.7 per cent so far this week. The index fell to its lowest in 2021 at the end of the previous week.
Markets were mixed with Australian shares gaining 0.16 per cent, but Chinese blue chips losing 0.24 per cent. Japan’s Nikkei was flat.
