Comments
Equity benchmarks Sensex and Nifty opened on a flat note on Tuesday tracking a mixed trend in global markets and sustained foreign fund outflow.
The 30-share BSE index was trading 22.82 points or 0.04 per cent higher at 52,758.41 in initial deals. Similarly, the broader NSE Nifty inched 7.45 points or 0.05 per cent up to 15,822.15.
Also read: Asian shares pressured by fears over Delta virus variant
Asian Paints was the top gainer in the Sensex pack, rising over 1 per cent, followed by PowerGrid, L&T, TCS, Reliance Industries, HCL Tech and ITC.
On the other hand, ICICI Bank, M&M, HDFC Bank, Kotak Bank and Infosys were among the laggards.
In the previous session, the 30-share index Sensex ended 189.45 points or 0.36 per cent lower at 52,735.59, while Nifty settled 45.65 points or 0.29 per cent down at 15,814.70.
Foreign institutional investors (FIIs) were net sellers in the capital market, offloading shares worth ₹1,658.72 crore on Monday, as per provisional exchange data.
According to Binod Modi, Head-Strategy at Reliance Securities, domestic equities look to be flat as of now.
The slew of measures by Finance Minister on Monday to spur economic activities augurs well, he said, adding that the increase in allocation for Emergency Credit Line Guarantee Scheme from ₹3-lakh crore to ₹4.5-lakh crore is a fantastic move to support the pandemic-hit sectors and ensure liquidity, which also offers comfort to banks.
Notably, a sharp fall in daily caseload and satisfactory ramp-up in vaccinations have overshadowed concerns emerging from higher crude prices and weakening rupee, he said.
As per VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the strongest headwind for the market now is the continuous FII selling which is logical in the context of the high valuations.
“With strong DII buying (worth ₹1,277.08 crore on Monday) and overconfident retail activity, FIIs are now in a position to sell aggressively without pulling the markets down significantly.”
On the global front, US stocks ended higher with S&P 500 and Nasdaq recording fresh highs.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with losses in mid-session deals.
Meanwhile, international oil benchmark Brent crude was trading 0.55 per cent lower at $73.73 per barrel.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.