Sensex, Nifty flat in early trade; Bharti Airtel, SBI up

Globally markets have taken a breather from the risk-on mode. India too is likely to follow suit.

  • Last Updated : May 17, 2024, 14:11 IST

Benchmark equity indices BSE Sensex and NSE Nifty traded marginally in the red in Thursday’s early trade following weak global cues. The 30-share index Sensex was down 37 points, or 0.06%, at 58,213 at around 9.20 am (IST), while the 50-share index Nifty was down 8.15 points, or 0.05%, at 17,345.

As many as 14 stocks in the Sensex pack traded in the red with Tech Mahindra falling the most 0.70%. It was followed by Mahindra & Mahindra (down 0.68%), Axis Bank (down 0.60%) and Titan (down 0.56%). On the other hand, gain in Kotak Mahindra Bank (up 0.82%), Bharti Airtel (up 0.63%), Bajaj Finserv (up 0.46%) and State Bank of India (up 0.38%) capped the downside.

Among the sectoral indices on the BSE, the Telecom index was up 0.54%. Metal, Utilities, Power, Industrials, Basic Materials and Bankex were also up between 0.14% and 0.40%. On the other hand, Realty, Consumer Durables, Healthcare, Energy and FMCG were down between 0.20% and 0.50%.

Global markets

Overseas, most of the Asian stocks were down as investors continue to fret over a slowdown in the recovery from the pandemic. China’s consumer price index rose 0.8% year-on-year in August. Meanwhile, the producer price index jumped 9.5% from a year ago.

Wall Street ended lower on Wednesday, spooked by worries that the Delta coronavirus variant could blunt the economy’s recovery and on uncertainty about when the US Federal Reserve may pull back its accommodative policies. Meanwhile, the Federal Reserve said in its latest “Beige Book” that US businesses are experiencing rising inflation that is being intensified by a shortage of goods and likely will be passed onto consumers in many areas.

The Fed also reported that growth overall had “downshifted slightly to a moderate pace” amid rising public health concerns during the July through August period that the report covers.

“The deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism in most Districts, reflecting safety concerns due to the rise of the Delta a variant, and, in a few cases, international travel restrictions,” the report said.

Brokerage view

VK Vijayakumar, chief investment strategist, Geojit Financial Services said, “A major global trend post the Covid outbreak and the consequent crash in March 2020 and the incredible market recovery since April is the arrival and dominance of retail investors. This trend is robust and conspicuous in India. Importantly, retail investors have made money during this rally and continue to pour money into markets. Healthy development is the sustained increase in SIP inflows which have touched Rs 9,923 cr during August. Retail investors in SIPs should stay put with a minimum investment horizon of 4 years since returns in the next couple of years may turn out to be below par due to high present valuations. Globally markets have taken a breather from the risk-on mode. India too is likely to follow suit. FIIs are back to selling mode. An important trend is Bank Nifty gathering strength. Jio Phone Next launch tomorrow will be keenly watched by the market.”

Published: September 9, 2021, 09:55 IST
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