Sensex Today: Domestic equity markets opened on a tepid note amid weak global cues and tepid foreign flows. At 09:03 IST, the Sensex was down 282.76 points or 0.49 per cent at 57637.21, and the Nifty was down 85.20 points or 0.50 per cent at 17100.50.
Axis Bank, Bajaj Auto, IndusInd Bank, Infosys and Adani Ports were among major gainers on the Nifty, while losers were Tata Steel, ONGC, Reliance Industries, JSW Steel and Apollo Hospitals.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Rallies triggered by market positioning will be temporary because there won’t be any follow-on fundamental support for the rally. This trend played out in the US market last Friday with sharp cuts in major indices. There are no major triggers to take the mother market much higher at least in the near-term. There are no major triggers for a crash also since almost all negative factors are known to the market. Such an uncertain scenario provides opportunities for long-term investors to slowly accumulate high quality stocks showing improving prospects.”
“After a decent set of Q2 numbers from the leading IT majors, the Q2 numbers for banking also have begun well with very good results from HDFC Bank. The improvement in Net Interest Margin and impressive loan growth augur well for this banking blue chip. Even though strong dollar and high bond yields in US may nudge FIIs to sell, strong flows into domestic mutual funds and optimistic retail investors can provide the counter to FII selling providing some stability to the market,” he added.
Rupee Opens
Indian rupee opened marginally higher at 82.33 per dollar on against Friday’s close of 82.36.
Global Cues
Asian share markets slipped on Monday following another drubbing for Wall Street as investors brace for further drastic tightening in global financial conditions, with all the risks of recession that brings.
Tokyo stocks opened lower Monday with investors disheartened by falls on Wall Street, where participants shrugged off mostly solid bank earnings amid worries over bond yields and rising recession risks.
US stocks dropped on Friday as worsening inflation expectations kept intact worries that the Federal Reserve’s aggressive rate hike path could trigger a recession, while investors digested the early stages of earnings season.
Read all the Latest Business News and Breaking News here