Sensex up 62 points, Nifty at 18,076; Auto & pharma stocks rally
The market breadth was positive as shares 1,674 advanced while 721 declined and 96 remained unchanged.
Domestic benchmark indices opened with mild gains on Tuesday following Asian peers as U.S. equities extended a winning streak on optimism that the economic recovery can weather inflation risks. The dollar and Treasuries declined. In opening trades, Sensex rose 62 points or 0.10% to 60,607 while the Nifty 50 index was trading at 18,076 higher by 7 points or 0.04%.
“Investors have to always remember the fact that this bull run is global with India outperforming. In the mother market US, S&P 500 is up 25% YTD and in India, the Nifty is up by 29% YTD. The correlation between markets is very high globally. Therefore, a correction also is likely to be global. There are no visible triggers for a correction presently,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
FIIs, who used to dictate market trends, is now playing second fiddle in Indian markets with DIIs and retail investors calling the shots. Big FII selling in July (Rs 11308 cr) and October (Rs 13550 cr)didn’t impact the market. Yesterday FII selling of Rs 861cr was overwhelmed by the DII buying of Rs 1912 cr. So long as this trend continues, markets will remain resilient despite high valuations. An important feature of DII activity now is buying in large caps. There is a near consensus that the returns in 2022 will be modest and therefore, safety will be in performing large-caps, Vijayakumar added.
Gainers & losers
Top gainers & losers on the Sensex.
Sectoral strand
Among the sectoral indices Nifty Auto index surged 1.03%, the Nifty Pharma index rose 0.90% and the Nifty Realty index jumped 0.44%. While Nifty Metal, Nifty IT were up anywhere between 0.09-0.29%.
On the downside, the Nifty FMCG index slipped 0.38% and Nifty Bank lost 0.07%.
Broader markets
Broader markets outperformed benchmark indices as BSE MidCap index rallied 152 points or 0.58% to 26,457. While the BSE SmallCap index was quoting at 29,236 rising 109 points or 0.38%.
The market breadth was positive as shares 1,674 advanced while 721 declined and 96 remained unchanged.
Earnings today
Bosch, Mahindra & Mahindra, Power Grid Corporation, Astrazeneca Pharma, BHEL, HEG, Indraprastha Gas, MRF and Petronet LNG and others will release their September quarter earnings today.
Global markets
Overseas, Asian stocks are trading higher on Tuesday following overnight gains on Wall Street that took the major indexes to record closing highs.
Wall Street stocks ended slightly higher on Monday, rising early after the passage of a US infrastructure spending bill but paring gains late as sliding Tesla shares weighed the indexes down.
The U.S. House of Representatives late Friday passed a more than $1 trillion infrastructure bill, sending the legislation to President Joe Biden for his signature. First passed by the Senate in August, the package would provide new funding for transportation, utilities and broadband, among other infrastructure projects.