The resilience of the market in general, and the momentum in the broader market in particular, can be explained only by one factor – the exuberance and dominance of the newbie retail investors, said an analyst.
“Weakness in IT and strength in banking which expectedly played out yesterday need not become a trend. Results of Infosys, Wipro and HCL Tech may not disappoint the market like TCS. INR at 75.35 to the dollar is becoming a major tailwind for IT. So investors should remain invested and even buy on declines,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
How are bluechips doing
After opening in the red, benchmark indices recovered. At 9.25 am, BSE flagship Sensex was up 110 points or 0.18 per cent to 60,245. NSE benchmark Nifty advanced 41 points or 0.23 per cent to 17,987.
“Weakening of the rupee and inflationary pressure is adding to the woes of traders. Stock-specific action could be seen as the quarterly earnings season starts to gain momentum,” said Sageraj Bariya, Vice President – Institutional Sales, East India Securities.
In the 50-share pack Nifty, Tata Motors was the biggest gainer, up 2.96 per cent. Bajaj Auto, Hindalco, Eicher Motors, JSW Steel, SBI, Tata Steel and Hero MotoCorp were among other gainers.
HCL Tech was the top loser in the pack, down 2.15 per cent. M&M, Infosys, Tech Mahindra, Indian Oil, ONGC, Shree Cement, NTPC and Coal India were among those that traded in the red.
FACTORS DRIVING MARKETS
Yields, dollar rise: The yield on benchmark 10-year yield touched 1.6136 per cent after a strong rise on Monday. The two-year yield rose to 0.3517 per cent, up from its US close of 0.318 per cent. The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up at 94.423.
Evergrande crisis: Reuters reported that some of China Evergrande Group’s offshore bondholders have not received interest payment by a Monday deadline. Rivals Modern Land and Sinic became the latest developers scrambling to delay bond payment deadlines.
Crude oil: Oil prices rose on Friday, tracking towards a 4.2 per cent gain for the week on signs some industries have begun switching fuel from high priced gas to oil and on doubts the US government would release oil from its strategic reserves.
Broader markets
Broader market indices were trading mixed, in line with their headline peers in morning trade. Nifty Smallcap was up 0.11 per cent while Nifty Midcap declined 0.17 per cent. Broadest index on NSE, Nifty 500, was up 0.04 per cent.
Delta Corp, Ujjivan SFB, Radico Khaitan, Indian Hotel, Castrol India and APL were gainers from the space while Adani Total Gas, Oberoi Realty, Torrent Power, Chambal Fertilisers, Firstsource Solutions and Vakrangee were under selling pressure.
Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.9 per cent in early trade, after U.S. stocks ended the previous session with mild losses. U.S. stock futures, the S&P 500 e-minis, fell 0.43 per cent.
Australian shares slipped 0.29 per cent while Japan’s Nikkei stock index slid 1.03 per cent. China’s blue-chip CSI300 index was 0.75 per cent lower, while Hong Kong’s Hang Seng index opened down 1.35 per cent.
Things to watch out for:
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Q2 earnings: BEPL
