The clear message from yesterday’s package for telecom industry and PLI scheme for autos is that the government is on fast-forward mode as far as reforms are concerned. These reform initiatives justify the market’s confidence in India’s potential growth and earnings outperformance, said an analyst.
“The exuberance in the market is partly justified by the bold reform initiatives. The overconfidence of the bulls, however, emanates from the lack of any moves on the horizon that will sharply reduce liquidity in the market,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
How are the bluechips doing?
After opening in the green, benchmark indices maintained their momentum. At 9.24 am, BSE flagship Sensex was up 127 points or 0.22 per cent to 58,850. NSE benchmark Nifty rose 44 points or 0.25 per cent to 17,563.
“Crucial support for Nifty50 is 17,400, while Nifty may face some resistance at 17,700,” said Mohit Nigam, Head – PMS, Hem Securities.
In the 50-share pack Nifty,
was the biggest gainer, up 3.15 per cent. ITC, Bharat Petroleum, Eicher Motors, ONGC, UPL, Tata Consumer and Tata Steel were among other gainers.
TCS was the top loser in the pack, down 0.44 per cent. Tech Mahindra, Shree Cement, Divi’s Labs, Bharti Airtel, Hindalco, HDFC and Infosys were among those that traded in the red.
FACTORS DRIVING MARKETS
Good news
Low interest rates: Real interest rates are puzzlingly low around the world, European Central Bank board member Isabel Schnabel said on Wednesday, arguing that investors may be overestimating the impact of the Delta variant of the coronavirus on the economy.
Govt incentives: The government has announced a number of incentives for auto, textile, telecom and drone industries that will excite traders. Stocks from these industries may see buying interest.
Broader markets
Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 0.74 per cent while Nifty Midcap added 0.53 per cent. Broadest index on NSE, Nifty 500 was up 0.37 per cent.
APL Apollo, Sunteck Realty, Quess Corps, Voda Idea,
India and Crompton Greaves were gainers from the space while SRF, V-Guard, Ajanta Pharma, Hindustan Copper, Carborundum Universal and Delta Corps were under selling pressure.
Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.45 per cent, while Japan’s Nikkei shed 0.47 per cent, after hitting 31-year high it hit on Monday.
There were gains on Thursday in Australia, up 0.65 per cent, but the Hong Kong benchmark fell 0.42 per cent with property names continuing to drag as embattled developer China Evergrande Group fell another 8 per cent. Chinese blue chips lost 0.66 per cent, a day after economic data missed expectations.
US stock futures, the S&P 500 e-minis, were flat.
