The Indian market opened in negative territory on Wednesday. Benchmark BSE Sensex It closed at 58,266.58, down 30.33 points or 0.05 per cent. On the other hand, broad nifty It was down 1.60 points or 0.01 per cent at 17,360. On the NSE, Grasim was the top gainer, rising 2.13 per cent, followed by IndusInd Bank, Bharti Airtel, HDFC Life and BPCL. On the other hand, Eicher Motor, Wipro, Infosys, Maruti, Divislab lagged behind. Sector wise, Nifty PSU Bank was the top gainer and Nifty Auto, Nifty IT, Nifty Pharma, Nifty Realty were trading in the red mark. On BSE, Armaan Financial Services, Asian Tiles were the gainers and Aegis Logistics was the top loser. BSE Midcap rose 0.59 per cent and BSE Smallcap rose 0.57 per cent. 26 stocks rose and 24 stocks declined in early trade on the NSE, keeping the overall market positive. On BSE, 14 stocks rose and 16 stocks declined, keeping overall market breadth negative.
“The stock market experts are very confused now. According to all metrics of valuation, the markets are considered significantly overvalued, even overvalued, and ripe for correction. But the market is setting record after record, driven by liquidity and the enthusiasm of retail investors, regardless of valuation concerns. India is one of the best performing markets in the world. As a result valuations have become excessive. MSCI India is at an 80 per cent premium to the MSCI EM Index. In the famous words of Warren Buffett, “It’s time to be fearful” because greed is driving the market. Reforms are imminent but we don’t know when it will happen. The 10-year US bond yield adds up to about 1.36 per cent. Cents are a sign that inflation may not be as temporary as the Fed believes. Traders can consider power positions and investors can book some profit and increase the cash component in the portfolio. There are rumors of relief to the telecom industry. This can provide flexibility to telecom stocks,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
In the banking pack, IDFC First Bank was the top laggard, with its shares rising 1.40 per cent, followed by Yes Bank with a gain of 1.38 per cent. On the other hand, AU Small Finance was the top loser. Indian markets opened after mixed signals from the global market. In the US stock market, stock indexes mostly closed lower, although the tech heavy Nasdaq hit another all-time high. Apart from the US stock market, Hong Kong’s Hang Seng index rose 0.16 per cent, or 42.48 points, to 26,396.11. In Japan, the benchmark Nikkei 225 index was down 0.34 per cent or 100.87 points at 29,815.27, while the broader Topix index was down 0.20 per cent or 4.11 points at 2,059.27.
The benchmark index is expected to open on a positive note as per the trends of SGX Nifty. US stock indexes closed mostly lower yesterday, with solid gains in Apple, Facebook and other tech heavyweights. Asian markets had a mixed start with Tokyo stock trading as investors sought to lock in gains following recent rallies in the market. We may see some movement in EID Parry today as the Board of the Company has approved setting up of 120 KLPD Grain/Sugar Syrup/Molasses-based Distillery at the Company’s Sankili unit in Andhra Pradesh. Overall, Indian indices look towards positive territory with regular foreign capital inflows, strong domestic data. On the technical front, 17450 may act as an immediate resistance for Nifty 50, followed by 17,500 while 17,100 remains an important support for Nifty 50,” said Mohit Nigam, Head – PMS, Hem Securities.