Sensex, Nifty stare at flat opening on Wednesday; these key factors to steer indices

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Published: July 22, 2020 8:25 AM

Trends on SGX Nifty were suggesting a flat opening for the Sensex and Nifty 50 on Wednesday. Nifty futures were trading just 10.50 points or 0.09 per cent higher at 11,185.50 on Singaporean Exchange.

Sensex. niftyWe would advise traders to be cautious, as the on-ground realities remain unchanged

Domestic equity markets benchmarks, BSE Sensex and Nifty 50, after rising for the third consecutive trading session, are now set to open flat on Wednesday, on the back of mixed Asian cues and rising coronavirus cases. In the previous session, global equities cheered positive trial results of three coronavirus vaccines. Sentiments were further improved on the reports that the European Union leaders have approved a massive stimulus package to counter the economic impact of coronavirus. “We would advise traders to be cautious, as the on-ground realities remain unchanged. On the other hand, we would advise investors to continue with their defensive portfolio approach given the high valuations and maintain stock-specific approach,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

SGX Nifty trades flat: Trends on SGX Nifty were suggesting a flat opening for the Sensex and Nifty 50 on Wednesday. Nifty futures were trading just 10.50 points or 0.09 per cent higher at 11,185.50 on Singaporean Exchange.

Nomura sees India’s FY21 GDP shrinking: Economic activity continues to remain weak and will lead to a 6.1 per cent contraction in India’s GDP in the current fiscal, a foreign brokerage said on Tuesday. The Reserve Bank is likely to pause at the upcoming policy review in August and cut rates by 25 basis points each in the October and December reviews, Japanese brokerage Nomura said in a report.

June quarter results today: Larsen & Toubro, Bajaj Auto, Bajaj Holdings, Alembic Pharma, Jindal Steel, ICICI Securities, TTK Prestige, Rallis India, MTNL, and Heidelberg Cement are among companies which are scheduled to announce their June quarter results later in the day today.

FM Sitharaman says more steps likely: Finance minister Nirmala Sitharaman on Tuesday asserted that the raft of relief measures announced by the government through the Rs 21-lakh-crore package have made a big difference to companies coping with the impact of the Covid-19 pandemic and pledged more steps, if required, to prop up the economy. FM also highlighted the emergence of green shoots in the economy.

Asian markets: Asian stock markets were trading lower in early morning deals on Wednesday. Japan’s Nikkei 225′s lost 0.37%, while the Topix edged down 0.19%. In South Korea, the Kospi rose 0.11%.

US markets: In overnight trade on Wall Street, US market indices ended mixed. The Dow Jones Industrial Average rose 159.53 points, or 0.6%, to 26,840.4, the S&P 500 gained 5.46 points, or 0.17%, to 3,257.3 and the Nasdaq Composite dropped 86.73 points, or 0.81%, to 10,680.36.

FII and DII data: On Tuesday, foreign institutional investors (FIIs) bought shares worth Rs 2,265.88 crore, while domestic institutional investors (DIIs) sold shares worth Rs 727.39 crore on a net basis, according to the provisional data available on the NSE.

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