Indian markets opened on a cautious note today, the benchmark S&P BSE Sensex was down 35.14 points, or 0.06 per cent at 55,913.96 and the blue-chip Nifty50 was down 6.80 points or 0.04 per cent at 16630.10. Indian benchmark indices had a tepid start seeking more clarity from Jackson Hole Symposium where US Fed Jerome Powell is expected to drop some hints about the time line of US tapering of $120 billion asset purchase from the US economy. Hindalco, UPL, Grasim, HDFC, Ultra Cement were the top gainer on Nifty50 while Mahindra and Mahindra, HDFC, ICICI Bank were among the laggards in the early trade. On the NSE, 27 stocks advanced, 21 stocks declined, and 2 remained unchanged.
However, SAIL, Jindal Poly Films were the gainers on the BSE while Mahindra and Mahindra, Proctor and Gamble and Swan Energy were among the top losers on BSE
“Domestic equities look to be flat as of now. We believe India is at the beginning of capex revival phase and therefore corporate earnings recovery looks sustainable. Notably, a sharp improvement in key economic indicators like GST collection, auto sales volume despite supply disruption, improvement in collection efficiencies of MFIs and other high frequency indicators like e-way bills, power consumption, strong import-export growth in July, etc. indicate sustainable rebound in corporate earnings in subsequent quarters. This should aid market to sustain premium valuations. Additionally, government’s focus to improve credit growth through credit outreach programme augurs well for domestic economy,” Binod Modi, head-strategy at Reliance Securities said.
BSE midcap was up 0.38 per cent and smallcap was also up 0.46 per cent while Nifty Bank was down 0.39 per cent, Nifty Financial services was down 0.40 per cent. India’s fear gauge Vix was down 3.41 per cent to 13.08 points.
At 0940 am, the BSE Sensex was trading at 55,780, down 168.8 points, 0.30 per cent and the NSE Nifty50 was trading at 16,601, down 34.95 points. On Friday, Nifty futures on the Singaporean Stock Exchange was trading up 22.75 points, or 0.14 per cent at 16,660 signaling a positive start for the Indian markets.
“Markets appear tantalizingly poised with the possibility of a swing in September. This can be on the downside if the trigger comes from a hawkish Fed speak from the Jackson Hole symposium. Covid cases rising, though slowly, too can turn out to be a dampener. The elephant in the room is the sustained FII selling which touched Rs 1974 cr in the cash market yesterday. It would be difficult for retail and DIIs to absorb the selling from FIIs, which might aggravate if the message from the Fed chief tonight is hawkish. Risk-reward appear to be not on the side of bulls,” Dr VK Vijaykumar, chief investment strategist at Geojit Financial Services said.
However, Indian markets taking a mixed cues from Asian and the US stock market opened flat and on a cautious note. Just ahead of Powell’s speech at Jackson Hole Symposium on Friday, Asian stock markets opened in the red. Hongkong’s benchmark Heng Seng index was trading down 66.82 points, 0.27 per cent at 25,335. Tokyo’s benchmark Nikkie 225 was down 126.99 points, 0.45 per cent at 27,618, South Korea’s Kospi index was trading up 2.98 points, 0.10 per cent at 3132.21, the Shanghai Composite shed 0.21 per cent to 3,494.42.
Apart from Powell’s speech at Jackson Hole Symposium and any possible hint about tapering of stimulus, Indian domestic market is keenly looking up to the GDP data that is scheduled to come out on August 31.
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