Markets open flat on mixed global cues; Nifty below 15,850

The markets opened on a mixed note on Tuesday (July 6). Sensex inched higher by 55 points in early trade on Tuesday, tracking gains in index heavyweights HDFC twins, Bajaj Finance and Infosys amid sustained foreign fund outflows.

The 30-share BSE index was trading 55.46 points or 0.10 percent higher at 52,935.46 in initial deals. Similarly, the broader NSE Nifty advanced 24.05 points or 0.15 percent to 15,858.40.

At 09:16 AM, the Sensex was down 7.49 points or 0.01 percent at 52872.51, and the Nifty was up 8.60 points or 0.05 percent at 15843.00. About 1482 shares have advanced, 436 shares declined, and 72 shares are unchanged.

UltraTech Cement was the top gainer in the Sensex pack, rising 0.69 per cent, followed by HDFC Bank, Maruti, Tata Steel, Titan and Bajaj Auto, HDFC, M&M, L&T and Bajaj Finance. Infosys was up 0.06 percent in early deals.

On the other hand, Sun Pharma, TCS, HUL, and Reliance Industries were among the laggards.

HDFC Bank, Ultra Cement, Maruti, Tata Steel were the top gainers on the Sensex while ICICI Bank, ITC, Reliance, HUL were the top losers at opening bell.

In the previous session, the BSE Sensex closed 395.33 points or 0.75 percent higher at 52,880. Similarly, the broader NSE Nifty surged 112.15 points or 0.71 percent to 15,834.35.

Foreign institutional investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 338.43 crore on Monday, as per provisional exchange data.

"Domestic equities look to be muted as of now. Notably, sharp rise in crude prices and strengthening dollar index weighed on sentiments in the last couple of days. Further, expectations of further rise in crude prices with no agreement on ease of production in the OPEC meeting can weigh on sentiments further," said Binod Modi Head-Strategy at Reliance Securities, according to PTI.

However, we continue to believe any meaningful correction in the market should be offering opportunity to investors to get in quality stocks, Modi said.

Asian stocks trade mixed

European equities closed higher on Monday. Asian stock markets are mixed in early Tuesday trade with Japan markets trading higher while Chinese and Hong Kong markets trading lower. Japan’s Nikkei 225 rose 0.3 percent while the Topix index gained 0.3 percent. South Korea’s Kospi gained over half a percent. US markets remained closed on July 4 on account of Independence Day holiday.

Oil prices up

Oil prices rose slightly on Tuesday with Brent Crude trading at $77.44 a barrel. International oil benchmark Brent crude surged 0.32 percent to $77.41 per barrel.

Fuel prices were unchanged on Tuesday (July 6). Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. The petrol price is inching the century mark in Delhi with a litre costing Rs 99.9 a litre. Diesel is retailing at Rs 89.4 per litre. In Mumbai, petrol prices stood at Rs 105.9 a litre while diesel was priced at Rs 96.9 per litre. In Kolkata, the cost of a litre of petrol is Rs 99.8 per litre while diesel is being retailed at Rs 92.31 per litre. In Chennai, petrol is being retailed at Rs 100.7 per litre. Diesel price remains unchanged at Rs 93.9 per litre.

Officials in oil companies attribute the consistent increase in fuel prices to development in the global oil markets where both product and crude price have been firming up for the past couple of months on demand rise amidst the slowing of pandemic. However, a closer look at the fuel retail prices in India gives a picture that it is the high level of taxes that is keeping fuel rates higher even in times when global oil prices are firm.

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