Market has been consolidating for a while, however all dips are being bought eventually. Foreign institutional investors have continued to pour money into India, providing massive support to market rally.
“IMF projects India’s GDP growth rate at 11.5 per cent and 6.8 per cent for 2021 & 2022 respectively. This means India will be the fastest growing large economy in the world in the medium term. Going by the Q1 & Q2 trends, earnings growth also is likely to accelerate. This explains the upgrading of India by most foreign brokerages,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He added, “Sentiments are positive as reflected in the sustained FPI inflows. Institutional investment is seeing rotation from the star performers of 2020 like pharma & IT to an economy facing cyclicals like financials & industrials. However, the rise in crude is a macro- negative for India.”
Factors driving markets
- US bond yields fall: Yields on two-year Treasuries hit a record low and the 10-year yield extended a pullback from a one-year high as a bond market sell-off started to fade.
- Inflation on rise: US retail sales rebounded sharply in January and manufacturing activity rose, while US producer prices increased by the most since 2009, suggesting inflation was starting to creep up.
How are bluechips doing
After opening in the green, benchmark indices dipped below the flatline. At 9.55 am, BSE flagship Sensex was down 31 points or 0.06 per cent to 51,673. NSE benchmark Nifty was up 5 points or 0.03 per cent to 15,214.
“The markets have been a tad nervous since yesterday. The key support to watch out for is 15,100 and until we do not close below this level, traders can accumulate long positions at the current juncture and keep a stop below the 15,100 support level. 15,500 can be a potential target,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
In the 50-share pack Nifty, GAIL was the biggest gainer, up 3.87 per cent.
, Hindalco, SBI, Power Grid, SBI Life Insurance, Indian Oil, Tata Steel and HDFC Life Insurance were among other gainers.
ICICI Bank was the top loser in the pack, down 1.48 per cent. M&M, Kotak Mahindra Bank, HDFC, Titan, Bajaj Finance, Nestle India, Grasim and HDFC Bank were other losers in the pack.
Broader market indices traded with gains outperforming their headline peers in morning trade. Nifty Smallcap was up 0.97 per cent while Nifty Midcap added 0.39 per cent. Broadest index on NSE, Nifty 500 was up 0.22 per cent.
Bank of India, Union Bank of India, Mahanagar Gas, Indiamart Intermesh, PNB Housing Finance and Indian Bank were among major gainers from the space while Sterlite Chemicals, KEI International, CDSL, Dr Lal Pathlabs, Apollo Hospitals and Ashok Leyland were under selling pressure.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.15 per cent but was still close to an all-time high. Shares in China rose 0.77 per cent. Australian stocks erased gains to trade 0.05 per cent lower, while Japan’s Nikkei was unchanged.
E-mini futures for the S&P 500 fell 0.04 per cent.
The Dow Jones Industrial Average rose 0.29 per cent, while the S&P 500 lost 0.03 per cent and the Nasdaq Composite dropped 0.58 per cent. The MSCI’s global stock index fell 0.04 per cent but was still near a record high.