The exuberant retail investors have been buying on every dip. 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.
How are the bluechips doing?
After opening in the green, benchmark indices maintained their lead. At 9.31 am, BSE flagship Sensex was up 190 points or 0.33 per cent to 58,042. NSE benchmark Nifty rose 38 points or 0.31 per cent to 17,287.
In the 50-share pack Nifty, Motors was the biggest gainer, up 3.10 per cent. , ONGC, , Hero MotoCorps and Reliance Industries were among other gainers.
Insurance was the top loser in the pack, down 2.31 per cent. Cipla, HCL Tech, Shree Cement, HUL, Hindalco, Tech Mahindra and UltraTech Cements were among those that traded in the red.
FACTORS DRIVING MARKETS
Yields, dollar flat: US treasuries have been cautious ahead of the data release, and in Asian hours on Friday the yield on benchmark 10-year Treasury notes was 1.2919 per cent compared with its US close of 1.294 per cent on Thursday. The dollar stayed pinned at month lows against a basket of currencies with the euro doing a fair amount of the work.
US jobs data: There is some caution ahead of the upcoming jobs data on Friday. The Labor Department will release the non-farm payrolls report for August at 1230 GMT. Solid jobs recovery is an important criteria for the US central bank to start paring pandemic-era stimulus measures.
Broader markets
Broader market indices were trading higher, outperforming their headline peers. Nifty Smallcap was up 0.56 per cent, while Nifty Midcap added 0.62 per cent. Broadest index on NSE, Nifty 500 was up 0.43 per cent.
Trident, Vakrangee, IRB Infra Developers, Exide Industries, Prestige Estates, L&T Tech Services were gainers from the space while Adani Total Gas, JSW Energy, Crompton Greaves, CAMS, Rites and Affle India were under selling pressure.
Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan was broadly flat in early trading in Asia having posted gains in eight of the last nine sessions as the benchmark edges back towards its position in mid July before Chinese regulatory crackdowns sent shares tumbling.
Japan’s Nikkei rose 0.38 per cent, and MSCI’s all-country world index edged higher having ended the previous session at its fifth consecutive closing high.
Australia was up 0.3 per cent and Korea rose 0.61 per cent while Chinese blue chips fell 0.27 per cent and Hong Kong dropped 0.6 per cent right after the bell, as traders try to balance weaker economic data out of China against the potential for future stimulus.
