Sensex: Bulls take a breather as Sensex, Nifty slip in early trade; IT, bank stocks drag
The BSE Sensex was down 64 points, or 0.08%, at 84,850, while the Nifty50 fell 30 points, or 0.12%, to 25,910 around 9:17 am.
The benchmark indices have hit record highs in every session since the U.S. Federal Reserve cut interest rates by 50 basis points last week.
In the Sensex pack, HCL Tech, Asian Paints, Tech Mahindra, Bajaj Finance, Bajaj Finserv, Infosys, and SBI opened lower, while Power Grid, Tata Steel, JSW Steel, UltraTech Cement, and Titan posted early gains.
On the sectoral front, Nifty Metal gained 1.2%, extending its rally for the second consecutive day following China’s announcement of several measures to boost its slowing economy.
Meanwhile, Nifty Financial Services, FMCG, IT, PSU Bank, Realty, and Healthcare indices opened in the red.Among individual stocks, Easy Trip Planners fell 7.4% in early trade amid reports that promoter Nishant Pitti sold up to 8.5% stake in the company through block deals.Delta Corp shares also surged 10% after announcing demerger of its real estate and hospitality businesses.
Experts View
“The Chinese monetary stimulus measures lifted the Chinese and Hong Kong markets yesterday and if the rally continues it is possible that FIIs will move more funds to invest in these markets which are highly attractive on valuations. In India metal stocks rallied in response to the Chinese stimulus measures,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“The gush of domestic liquidity, which is the main driving force behind the rally in India, is likely to keep the market resilient. If Nifty is to go past 26000 decisively and sustain there, it has to be led by the Bank Nifty. There is more steam in this segment,” Vijayakumar added.
Deepak Jasani, Head of Retail Research at HDFC Securities, said, “Nifty formed a spinning top like pattern on Sept 24 after remaining in a 125 points range. Nifty could now face resistance from 26250 while 25611-25791 band could offer support.”
Global Markets
Chinese stocks surged on Wednesday, lifting regional markets and helping extend a stimulus-fueled global rally. Mainland Chinese blue chips advanced 3.1%, following a 4.3% jump in the prior session. Hong Kong’s Hang Seng climbed 2.2%, adding to Tuesday’s 4.1% surge.
The strong start for Chinese stocks invigorated other regional indexes, with Taiwan’s benchmark up 1.3% and South Korea’s Kospi gaining 0.1% MSCI’s broadest index of Asia-Pacific shares outside Japan rallied 1%.
Japan’s Nikkei shook off early weakness to rise 0.3%, helped by a retreat in the yen, a traditional safe haven.
FII/DII Tracker
As per provisional figures, Foreign Institutional Investors (FIIs)/ Foreign Portfolio Investors (FPIs) sold shares worth net Rs 2,784.14 crore and Domestic institutional investors bought shares worth net Rs 3,868.31 crore on 24th September 2024.
More to come…