Sensex up 256 points at open, Nifty above 16,300; bank, financial stocks rally

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Benchmark equity indices opened higher on Tuesday amid mixed global cues. In early trade, Sensex gained 256 points or 0.47% at 54,659, while the Nifty 50 rose 62 points or 0.38% to at 16,320.

“A clear trend in the market during the last several trading sessions is the outperformance of large-caps led the high-quality private sector financials. The underperformance of the mid-small-caps segment is a desirable healthy trend since it is removing the froth in the segment. An area of concern in the market now is the frenzy in the IPO market where retail investors are applying for IPOs & OFSs without any consideration of fundamentals & future prospects. The goal is just to make money on the listing. Many retail investors are likely to lose money in the future from some of these issues,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Top gainers & losers

Sectoral strand

Most sectoral indices opened in the green. Nifty Metal and Nifty Realty indices climbed 0.29% each. Nifty Bank, Nifty Auto, Nifty FMCG, Nifty IT and Nifty Pharma indices were up in the range of 0.12-0.20%.

Broader market

The broader market opened higher as the BSE MidCap index rose 0.24% to 22,956 whereas the BSE SmallCap index is quoting at 26,611 up about 0.28%.

Overall market breadth was positive as 1,389 shares advanced compared to 975 declined while 92 remained unchanged.

Earnings today

Zomato, Coal India, Lupin, Power Grid Corporation of India, Aarti Surfactants, Ahluwalia Contracts (India), Aarey Drugs & Pharmaceuticals, Ashoka Buildcon, Balaji Telefilms, Mrs Bectors Food Specialities, Brookfield India Real Estate Trust REIT, Computer Age Management Services, Capacite Infraprojects, Century Plyboards, Chalet Hotels, Cochin Shipyard, Deepak Fertilisers, Eveready Industries, Galaxy Surfactants, Godrej Agrovet, Heranba Industries, Infibeam Avenues, IRB Infrastructure Developers, Jindal Steel & Power, Krishna Institute of Medical Sciences, Linde India, Manappuram Finance, Max Financial Services, Motherson Sumi Systems, Prestige Estates Projects, Pricol, Reliance Infrastructure, Sequent Scientific, Siemens, Spencers Retail, Trent, Tata Teleservices (Maharashtra), Whirlpool of India, and Wonderla Holidays will release quarterly earnings on August 10.

Global markets

Overseas, Asian stocks are trading mixed on Tuesday following overnight declines for the Dow Jones Industrial Average and S&P 500 on Wall Street.

Worries about the impact of Covid on global growth continued to weigh on investor sentiment, with countries grappling with the spread of the highly transmissible delta variant of the virus.

In the US, the S&P 500 dipped on Monday, as fuel demand worries during a resurgent pandemic sent energy stocks lower but rising U.S. Treasury yields lifted financial stocks, keeping Wall Street’s benchmark index near record levels.