Sensex, Nifty gain on firm global cues; banks, auto see buying interest


NEW DELHI: Buying continued on Dalal Street on Tuesday driven by firm global cues, taking benchmark indices higher. Stocks from auto, bank and media sectors were some of the biggest gainers.

Many global market experts are warning of bubbles in many asset classes, most prominently in equities. Equities, globally, are over-valued by all metrics but even bears are still invested, said an analyst.

“Most bears are fully invested because the usual triggers for a sharp correction – persistent inflation, hawkish Fed, signals of imminent recession – are absent. So, the bull juggernaut may continue to roll on; but investors have to exercise caution,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services..

How are the bluechips doing?
After opening in the green, benchmark indices gained further. At 9.38 am, BSE flagship Sensex was up 48 points or 0.09 per cent to 52,928. NSE benchmark Nifty gained 29 points or 0.18 per cent to 15,863.

In the 50-share pack Nifty, Shree Cement was the biggest gainer, up 2.52 per cent.

, , Grasim, Tata Motors, SBI Life Insurance, and JSW Steel were among other gainers.
was the top loser in the pack, down 0.82 per cent. Tata Consumer, HUL, Reliance Industries, Nestle India, Cipla, TCS, Bharti Airtel and HCL Tech were other losers in the pack.


Good news

Dollar stable: The dollar was little changed at 92.235 after dropping from a three-month high at the end of last week, hurt by the weaker details of the US payrolls report. A weaker greenback makes emerging markets like India expensive.

Japan spends more: Japan’s household spending rose at a double-digit rate in May as consumers bought cars and mobile phones, though the pace of growth slowed from the prior month as a new wave of Covid-19 infections weighed on consumer confidence.

Europe expands: Euro zone businesses expanded activity at the fastest rate in 15 years in June as the easing of more coronavirus restrictions brought life back to the bloc’s dominant service industry, a survey showed.

Broader markets

Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 0.44 per cent, while Nifty Midcap advanced 0.37 per cent. Broadest index on NSE, Nifty 500 was up 0.22 per cent.

AU Small Finance Bank, ICICI Securities, Oil India, Trident, Kalpataru Power and India Cements were gainers from the space while Route Mobile, Happiest Minds, Graphite India, Adani Total Gas, Coforge and IndiaBulls Housing Finance were under selling pressure.

Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.05 per cent. In Hong Kong, the Hang Seng Index was down 0.7 per cent, while China’s CSI300 was off by nearly 0.3 per cent. Japan’s Nikkei was up 0.45 per cent while the S&P ASX200 stood 0.21 per cent higher. In South Korea, the Kospi 200 Index rose 0.5 per cent in early trade.

Chinese technology stocks remain under the microscope on Tuesday after the Cyberspace Administration of China (CAC) ordered an investigation into Didi Global Holdings just days after it listed on the New York Stock Exchange.


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