Source : INDIA TODAY NEWS
Stock markets opened marginally higher on Thursday, but the pace of gains remained muted compared with the sharp rally seen over the past few sessions. Investors appeared to take a breather after a strong run-up, while attention shifted to the release of India’s October retail inflation data for fresh cues on the interest-rate outlook.
The Sensex was trading at 82,067.98, up 188.58 points or 0.23%, at around 9:24 am. The index had opened at 81,762.27, against its previous close of 81,879.40. It touched an early high of 82,097.56 and a low of 81,576.15.
advertisement
The Nifty 50 was up 50.65 points, or 0.20%, at 25,305.70 around 9:25 am. It opened at 25,213.50 and moved between an early high of 25,312.40 and a low of 25,142.95.
The relatively modest gains come after a strong rally in November. The Nifty has risen 9.55% in seven trading sessions this month, largely driven by aggressive buying from foreign institutional investors (FIIs).
BAJAJ FINANCE, BAJAJ FINSERV LEAD SENSEX GAINERS
Bajaj Finance was the top gainer among Sensex constituents in early trade, rising 2.51%. Bajaj Finserv advanced 1.81%, while ITC gained 1.65%.
State Bank of India rose 1.02%, while ICICI Bank and Adani Ports gained 0.94% and 0.90%, respectively. Titan was up 0.80%, Axis Bank gained 0.68% and Eternal advanced 0.67%.
Bharat Electronics rose 0.63%, while IndiGo and Asian Paints gained 0.60% and 0.56%, respectively. Reliance Industries and HDFC Bank were also marginally higher.
On the losing side, Mahindra & Mahindra fell 1.31%, making it the biggest laggard. Hindustan Unilever declined 1.17%, while UltraTech Cement dropped 0.93%.
Sun Pharma fell 0.63%, Larsen & Toubro declined 0.53% and Power Grid Corporation slipped 0.53%. HCL Technologies, Infosys and TCS were also trading lower.
The broader market indices were also in positive territory, although gains remained measured.
The Nifty 100 rose 0.21%, while the Nifty 200 and Nifty 500 gained 0.24% and 0.33%, respectively. The Nifty Midcap 50 was up 0.07%, while the Nifty Midcap 100 advanced 0.40%.
The Nifty Smallcap 100 outperformed the benchmarks, rising 1.21%. India VIX, which measures expected market volatility, fell 1.62% to 17.27.
IT, AUTO AND PHARMA STOCKS UNDER PRESSURE
Sectoral performance was mixed in early trade. The Nifty Financial Services ex-Bank index gained 1.43%, while the Nifty Financial Services 25/50 index rose 1.03%. The Nifty Private Bank index was up 0.54%, and the Nifty PSU Bank index gained 0.12%.
The Nifty Media index advanced 1.41%, while Consumer Durables rose 0.79%. Metal stocks gained 0.41%, and Realty stocks were up 0.68%.
However, the Nifty IT index slipped 0.47%, while Pharma fell 0.44%. The Nifty Auto index declined 0.37%, and the Healthcare index was down 0.51%.
The Nifty FMCG index gained 0.14%, while Oil & Gas slipped 0.04%. The Nifty Chemicals index advanced 0.43%.
CRUDE OIL PRICES EASE
Crude oil prices were lower in early trade. US West Texas Intermediate (WTI) crude futures fell 0.95% to $85.71 per barrel, while Brent crude futures declined 1.09% to $91.75 per barrel.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the Nifty’s 9.55% rally in seven trading sessions in November had been driven primarily by aggressive FII buying.
He pointed out that the market’s earlier dynamic, in which foreign investors were selling while domestic institutional investors were buying, had now reversed. FIIs have turned aggressive buyers, while DIIs have become consistent sellers.
Vijayakumar said FIIs had already invested Rs 65,735 crore in Indian equities so far in November, adding that this trend could continue and potentially reach an all-time high.
He said better-than-expected second-quarter earnings and lower crude oil prices, with Brent around $92 per barrel, were also supporting the rally. However, continued profit booking by domestic institutions could limit further gains.
Investors will also be watching India’s October consumer price index (CPI) inflation data due later in the day. Vijayakumar flagged the possibility of inflation coming in around 6%, which could influence expectations of interest-rate hikes by the Reserve Bank of India.
He said the possibility of a 25-basis-point rate hike in December, followed by another 25-basis-point increase in February, could affect interest-rate-sensitive sectors.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
– Ends
SOURCE :- TIMES OF INDIA
