A major trend in the market this year has been the wide variations in sectoral performances. Two conclusions are possible from this: one, the market is indicating where the near-term earnings visibility lies and two, the underperforming banking space has some catching up to do, said an analyst.
“The buy on dips strategy has been rewarding investors handsomely since all market corrections are happening intra-day. The better-than-expected CPI inflation numbers that came in at 5.3 per cent for August is very positive news. MPC can be expected to continue with the accommodative stance for an extended period of time,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
How are the bluechips doing?
After opening in the green, benchmark indices rose further. At 9.32 am, BSE flagship Sensex was up 281 points or 0.48 per cent to 58,458. NSE benchmark Nifty rose 81 points or 0.46 per cent to 17,436.
“Crucial support for Nifty50 is 17,300 while Nifty may face some resistance at 17,600,” said Mohit Nigam, Head – PMS, Hem Securities.
In the 50-share pack Nifty, Divi’s Lab was the biggest gainer, up 1.88 per cent. Eicher Motors, Hero MotoCorp, Tata Motors, HCL Tech, UPL, Axis Bank, Bajaj Auto and Reliance Industries were among other gainers.
was the top loser in the pack, down 0.49 per cent. Coal India, UltraTech Cement, , HUL, Shree Cement and Grasim were among those that traded in the red.
FACTORS DRIVING MARKETS
Good news
India inflation falls: CPI moderated to 5.3 per cent in August, led by a moderation in food prices. Core CPI (ex food and fuel) remained steady at 5.8 per cent. Some analysts expect inflation to track below 5 per cent in the next 2-3 readings.
US inflation to be under control?: Meanwhile, markets are awaiting US inflation data on Tuesday. The core consumer prices are likely to rise 0.3 per cent in August. Prices were up 0.3 per cent the previous month and 0.9 per cent in June.
Bad news
China further tightens rules: China’s technology stocks are also being closely scrutinised after authorities told the country’s tech giants to stop blocking each other’s links on their sites. The directive was the latest in a string of tightening regulations that has dragged down the Hang Seng Tech Index by nearly 40 per cent since its peak this year in February.
Broader markets
Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 0.55 per cent while Nifty Midcap added 0.73 per cent. Broadest index on NSE, Nifty 500 was down 0.44 per cent.
JSW Energy, IRCTC, Oberoi Realty, TV18 Broadcast, SpiceJet and Linde India were gainers from the space while Caplin Point Labs, Tanla Platforms, Cyient, Godrej Agrovet, Coromandel International and PFC were under selling pressure.
Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.13 per cent. Australia’s S&P/ASX200 fell 0.31 per cent to 7,400.8, while Hong Kong’s Hang Seng Index dipped into negative territory. China’s blue-chip CSI300 index was down 0.2 per cent and Tokyo’s Nikkei traded 0.72 per cent higher.
