 "Sensex cools off after 300 point rise in opening trade")
Benchmark share indices rebounded after a sharp correction in the previous sessions, amid firm global cues, led by IT and short covering in consumer-led stocks.
Benchmark indices pared gains after a sharp rally in the opening trade where Sensex rose as much as 317 point, while the broader Nifty50 index regained its crucial 8,200 level.
Markets failed to sustain early gains amid profit taking on caution ahead of the winter session of the Parliament which begins today.
At 10:45 am, the 30-share index was trading at 26,438, up 134 points, while the broad-based 50-share index was quoting 8,135, up 26 points. In broader markets, BSE midcap traded flat, rising 0.04% while BSE small cap fell 0.45%.
IT was the top sectoral gainer in both the indices. Picking it up was TCS which was up around 3.8%.
“Nifty is likely to witness selling pressure on every rise towards 8400-8440 levels. Going ahead, we may witness sell pull back rally towards 8400 levels, whereas 8070 ay act as a support. Overall market view is cautious trade with a strict stop loss. For Intraday support lies at 8070/8020 and resistance at 8600/8670,” said Nirmal Bang Research in a technical note.
“Nifty tumbled down sharply from higher levels, after the bounce back move from 8000 to 8600 zones and almost lost all the recovery made in the last week. It has been making lower top – lower bottom and formed a Bearish Belt hold candle on daily chart which indicates that bears are having tight grip on the market amid lots of fear among the traders in line with the volatile Global and Domestic scenario,” said Anand Rathi Equity Advisory.
Sector and stocks
Nifty Bank slipped over 320 points from openings highs. The fall was led by Kotak Mahindra Banl, PNB and Bank of Baroda.
Tata Global Beverages rose almost 6% as Harish Bhatt was named new boss for the company post Cyrus Mistry’s removal as Chairman. It also reported 48.19% rise in consolidated net profit at Rs 108.14 crore for the September quarter.
Even after posting a 180% increase in net profit, GAIL fell almost 1% in early trade session today.
Tata Steel and Lupin were top Sensex losers, falling 2.17% and 2.41% respectively.
Snapping four-session long losing streak, JM Financial shares rose over 5% after the company’s subsidiary JM Financial Products acquired over 1.9 million shares in India Home Loan (IHL), translating into over 17% in the firm.
Positive inflation numbers
Inflation numbers reported yesterday have proved positive for the market. October WPI eased to 3.39% from 3.57% in September as prices of food articles softened to 4.34% in the month as compared to 5.75% in the previous month. Meanwhile, October CPI inflation hit one year low at 4.2% versus 4.31% in September.
Petrol prices hiked
Oil market companies are in focus as petrol price was cut yesterday by Rs 1.46/ litre and diesel by Rs 1.53/litre. Indian oil was trading 1.6% up during the early trade while HPCL saw a 2.25% rise. Meanwhile, BPCL was also gained almost 2%.
Global Markets
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2% in early trade on Wednesday, bouncing back from a four-month low touched the previous day.
Asian shares won the reprieve from a rally in Wall Street shares as the sell-off in global bonds and sharp gains in the dollar paused for now. SGX Nifty was trading 100 pointed up during the early morning trade
Japan's Nikkei rose 1% to nine-month high thanks to the fall in the yen against the dollar.
On Wall Street, the Dow Jones industrial average rose 0.29% to a record high while the S&P 500 gained 0.75%.
Since Donald Trump's unexpected victory in the U.S. Presidential election last week, U.S. shares have rallied while U.S. bond prices tumbled, pushing up their yields sharply, as investors expect higher inflation under his presidency.
(With inputs from Reuters)
