The equity markets in India, as represented by the 30-share Sensex and the broader Nifty-50 opened flat on Monday morning, as earnings weighed on the Sensex and Nifty heavyweights. Notably, the Sensex opened at 36,277, as compared to yesterday’s close at 36,283.25, while Nifty opened at 11,120.85, both the indices trading lower by 0.5% each after opening.
The Nifty futures on the Singapore Stock Exchange were trading 5.50 points, or 0.05 per cent, higher at 11,137 at 8.30 am, indicating a flat start for the Nifty50 in India. The shares of Asian Paints, Tech Mahindra, TCS, Adani Ports were trading in the red, and shed more than 1% each in the opening trade. Notably, Tech Mahindra, Asain Paints and TCS had reported off-colour results in the current quarter. Shares of HDFC Bank, Powergrid, L&T too lost nearly 1% each on Tuesday morning. Bajaj Auto, Hero Motocorp and SBI were among the minority shares trading in green.
Domestic markets finished at record highs on Monday, with Sensex and Nifty concluding at fresh peaks after rallying heavily in the intraday trades. The 30-share barometer Sensex zoomed 393.54 points to hit a record high of 36,443.98 before settling up 232.81 points or 0.65% at 36,283.25 while the wider share indicator Nifty added 101.9 points to mark a fresh peak of 11,171.55 before ending up 60.75 points or 0.55% at 11,130.4. Shares of Eicher Motors, Maruti Suzuki, HDFC, UPL, Bharti Infratel, TCS, Hero MotoCorp, Indian Oil Corporation, Indiabulls Housing Finance, Tata Steel, Kotak Mahindra Bank, Zee Entertainment Enterprises, Bajaj Auto, HDFC Bank, Tech Mahindra, L&T, Sun Pharma emerged as the major gainers on NSE Nifty rising 1-4%.
Broadly, Indian equities are on a perpetual upsurge for the last 13 months with Sensex and Nifty rising about 39%. Meanwhile, in the same period, shares of blue-chip companies such as Indiabulls Housing Finance, Titan, HDFC Bank, HDFC, Reliance Industries, Bharti Airtel, DLF, Tata Steel, Maruti Suzuki, IndusInd Bank, Vedanta and HUL. Following the record-breaking run in India’s stock market, Sensex and Nifty have managed a year to date return of 6-8% as at Monday’s close.
According to a report by Angel Broking, the investors should expect volatility in the stock market in the near term. “Since, the higher volatility is on cards, short term traders are advised to remain light on positions and should follow strict stop losses for existing positions. During the day, we saw good positive traction in most of the heavyweight constituents and at the same time, the broader market was undergoing a decent correction. Hence, going ahead, one needs to be very agile while picking up a trade,” the firm said, taking stock of yesterday’s rally in the stock markets.