Indian equity indices opened Thursday’s trading session gap-down. The NSE Nifty 50 opened 19.20 points, or 0.08%, lower at 23,143.90, while the BSE Sensex fell 68 points, or 0.09%, to open at 76,464.88. Analysts said that the Fed’s decision to keep the rates unchanged left market sentiments subdued.
Now, all focus shifts to the Union Budget which is due in another two days. It will further lead the market sentiments in the long term.
The GIFT Nifty indicated a subdued opening for stocks. It was down 5 points, or 0.02%, at 23,149. During the pre-open session, the Nifty 50 was up 6 points, or 0.03%, at 23,169.50, while the Sensex was up 65.88 points, or 0.09%, at 76,598.84. Also, the share price of Tata Motors was down 5.8% in the pre-open session.
“The union budget is due in two days, so some investors might use any bounce today to book profits or buy downside protection – note that the India VIX rallied for the fourth straight day yesterday,” said Akshay Chinchalkar, Head of Research at Axis Securities.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the recovery in the market is healthy since it is being led by fairly valued largecaps. The rally can be sustained if the Budget comes up with some strong growth-stimulating measures that can improve the market sentiments too.
However, a sustained rally can happen only if the FII selling stops and we get some leading indicators suggesting growth and earnings recovery, added Vijayakumar.
Tata Motors, Wipro, Infosys, UltraTech Cement, and Tata Steel were the top gainers in the Nifty 50. On the other hand, Bajaj Finance, Bajaj Finserv, NTPC, Britannia, and Bharti Airtel were the major losers in the Nifty 50.
The market breadth is in the favour of the bulls. Out of 1,950 stocks traded, 1,393 stocks were trading in the green while 448 declined, as per the data on NSE.
Bank Nifty opened 107 points or 0.22% lower to trade at 49,058.95. The Nifty Midcap 100 gained 156.45 points, or 0.30%, to open at 52,875.30.
Among the sectoral index,
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