The exuberant retail investors have been buying on every dips. This ‘ buy on dips’ strategy has been rewarding retail investors and, therefore, they can be expected to continue with that strategy until there is a sharp correction and negative signals in the market, said an analyst.
“FIIs are just chasing momentum now and therefore no serious significance should be given to their recent buys. But an important trend emerging in FPI inflows is their buying into debt: Rs 12,144 cr in August. This is the first positive monthly figure in 2021 and is likely to continue. For FIIs, risk-reward is in favour of debt at this stage of the market,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
How are the bluechips doing?
After opening in the green, benchmark indices extended their lead. At 9.27 am, BSE flagship Sensex was up 160 points or 0.28 per cent to 57,498. NSE benchmark Nifty rose 52 points or 0.30 per cent to 17,128.
In the 50-share pack Nifty, Dr Reddy’s Labs was the biggest gainer, up 2.82 per cent. HDFC Life Insurance,
, Adani Ports, Titan, UltraTech Cements, L&T and were among other gainers.
Hero MotoCorps was the top loser in the pack, down 0.94 per cent. Indian Oil, Tech Mahindra, Bajaj Auto, Maruti Suzuki, Power Grid,
and Eicher Motors were among those that traded in the red.
FACTORS DRIVING MARKETS
Auto sales data: Auto companies so far have reported flat monthly sales dataset which has disappointed some traders. Moreover, expected production cuts due to chip shortage has also made them cautious.
US jobs data: There is some caution ahead of the upcoming jobs data on Friday. Median forecasts are for a strong rise of 750,000 jobs, but they range from 375,000 to 1.02 million with the ADP report prompting speculation the risks are to the downside.
Broader markets
Broader market indices were trading higher, outperforming their headline peers. Nifty Smallcap was up 0.59 per cent, while Nifty Midcap added 0.24 per cent. Broadest index on NSE, Nifty 500 was up 0.27 per cent.
Amber Enterprises, Radico Khaitan, VIP Industries, Hindustan Aeronautics, Vodafone Idea and Natco Pharma were gainers from the space, while City Union Bank, Adani Total Gas, Prestige Estate Projects, Affle India, Shilpa Medicare and CAMS were under selling pressure.
Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent to a five-week high, helped by buying for the new quarter. Japan’s Nikkei added 0.1 per cent, while South Korea fell 0.6 per cent.
Nasdaq futures and S&P 500 futures were barely changed, while EUROSTOXX 50 futures eased 0.2 per cent and FTSE futures 0.1 per cent.
