Indian stock market opens in green amid mixed global cues
Indian stock market opens in green amid mixed global cues
The domestic benchmark indices opened higher on Thursday amid mixed global cues, as buying was seen in the pharma, auto and IT sectors in the early trade
MUMBAI — The domestic benchmark indices opened higher on Thursday amid
mixed global cues, as buying was seen in the pharma, auto and IT sectors in the
early trade.
At around 9.29 am, Sensex was trading 268.8 points or
0.33 per cent up at 81,267.09 while Nifty added 82.75 point or 0.34 per cent at
24,702.95.
Nifty Bank was down 29.70 points or 0.05 per cent at
55,647.15. The Nifty Midcap 100 index was trading at 58,188 after rising 263.35
points or 0.45 per cent. Nifty Smallcap 100 index was at 18,398.75 after
climbing 141.65 points or 0.78 per cent.
According to analysts, the Nifty ended higher on
Wednesday and the India VIX fell nearly 5 per cent, which bulls would have
liked to see.
"For Nifty, 24,462 remains intact and that's keeping
the optimism alive. Should this level break, the market will most likely drop
to key support at 23,800. Short-term resistance sits between 24,760 and 24,882.
Globally, stock bulls have tailwinds," said Akshay Chinchalkar, Head of
Research, Axis Securities.
Meanwhile, in the Sensex pack, Eternal, PowerGrid,
M&M, HDFC Bank, HCL Tech, TCS, IndusInd Bank and Kotak Mahindra Bank
were the top gainers. Whereas Nestle India, Titan, Bajaj Finance, Tata Motors
and Tech Mahindra were the top losers.
According to analysts, both geopolitical and economic
news are likely to weigh on markets in the near-term.
“The major economic news is the sharp dip in the US ISM
PMI data. This indicates that the US economy is slowing down sharply. The US
10-year bond yield has declined to 4.36 per cent and, given the slowing US
economy, is likely to trend lower," according to Dr. VK Vijayakumar, Chief
Investment Strategist, Geojit Investments Ltd.
This will turn out to be good for emerging markets (EMs)
like India in the medium term. Buy on dips continues to be the ideal strategy
now. Rate sensitives will be preferred in view of the expected rate cut by the
RBI MPC, said experts.
In the Asian markets, Hong Kong, Bangkok, Seoul, China
and Jakarta were trading in green, whereas only Japan was trading in red.
In the last trading session, Dow Jones in the US closed
at 42,427.74, down 91.90 points, or 0.22 per cent. The S&P 500 ended
with a gain of 0.44 points, or 0.01 per cent, at 5,970.81 and the Nasdaq closed
at 19,460.49, up 61.53 points, or 0.32 per cent.
On the institutional front, foreign institutional
investors (FIIs) were net buyers as they bought equities worth 1,076.18 crore
on June 4, while domestic institutional investors (DIIs) purchased equities
worth 2,566.82 crore.
