Sensex up over 200 points, Nifty tops 15,750 on F&O expiry day

FPJ Web DeskUpdated: Thursday, July 29, 2021, 09:58 AM IST
The stock started the trade in the green and gained 0.73 percent to Rs 3,281 on the BSE. | ANI Photo

The markets opened with gains. The benchmark BSE Sensex was up 220 points or 0.42 per cent at 52,663, while the Nifty 50 index was up 66 points at 15,775.

HCL Tech was the top gainer in the Sensex pack, rising over 2 per cent, followed by Titan, Tech Mahindra, M&M, Asian Paints, Reliance Industries and IndusInd Bank.

On the other hand, Maruti, Bajaj Auto, HDFC and PowerGrid were among the laggards.

On Wednesday (July 29), the Sensex ended 135.05 points or 0.26 per cent lower at 52,443.71, while the broader NSE Nifty slipped 37.05 points or 0.24 per cent to 15,709.40.

Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 2,274.77 crore on Wednesday, as per provisional exchange data.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, a major trend that has emerged post-COVID is the rise of the retail investor. Retail investors now account for 45 per cent of cash market transactions on Indian exchanges, a big jump from 33 per cent five years ago.

"During this period the share of FIIs has fallen sharply - from 23 per cent to 11 per cent. This domination of retail over FIIs is the reason why markets are not correcting sharply even when FIIs sell continuously. FIIs have sold shares worth Rs 6,100 crore this week.

"But it is a fact that most retail investors are driven by sentiments and momentum, not fundamentals," he said, according to PTI.

Fed keeps rates unchanged

In another boost to the bulls, the Fed has kept the rates unchanged and reiterated that it is "nowhere near considering a rate hike."

Also, the bounce back in Hong Kong and Shanghai indices suggests that the Chinese tech sell-off is a temporary issue and unlikely to become a contagion impacting global markets, he added.

In a statement issued after its latest policy meeting, the US Fed said it''s keeping its benchmark short-term rate pegged at nearly zero, where it has remained since the pandemic tore through the economy in March 2020.

Asian shares calm after US Fed keeps interest rate near zero

Asian stocks mostly rose Thursday after the Federal Reserve kept its accommodative monetary policies and signaled that economic recovery was on track.

Chinese technology giants led the way, as authorities moved to soothe jitters over anti-monopoly and data security enforcement against the industry.

Tokyo's Nikkei 225 gained 0.4 per cent to 27,687.28, while the Kospi in South Korea was slightly higher at 3,237.63. The Hang Seng in Hong Kong jumped 2.4 per cent to 26,092.02.

The Shanghai Composite Index rebounded 0.9 per cent to 3,393.17 after three days of declines. Sydney's S&P-ASX 200 added 0.3 per cent to 7,404.40. Southeast Asian markets rose.

“The Fed maintained its accommodative monetary policies near-term. While discussions of tapering plans are underway, the markets may be relieved that no tapering timeline was set out,” said Yeap Jun Rong, market strategist at IG in Singapore.

Games and social media giant Tencent Holding Ltd. surged 7.2 per cent in Hong Kong. Internet search giant Baidu Inc. was up 5.4 per cent in the territory, while its Wall Street-traded shares jumped 5.7 oer cent.

E-commerce giant Alibaba Group shares in Hong Kong climbed 4.8 per cent, mirroring a 5.3 per cent gain on Wall Street overnight.

Chinese Internet shares had slid earlier this week on reports that Beijing was considering restrictions on for-profit education ventures.

The China Securities and Regulatory Commission's meeting with top investment bankers on Wednesday night “appears to have calmed the most frazzled of nerves,” said Venkateswaran Lavanya of Mizuho Bank.

“But this does not put wider Chinese regulatory risks to bed. For one, claims of targeted clampdown on the $100bn private tuition industry does not address, certainly not denounce, ongoing regulatory tightening in tech and property,” she said.

Meanwhile, the Fed said Wednesday that "the economy has made progress” toward its goals of low unemployment and stable inflation.

The central bank however left its key interest rate unchanged at the end of a two-day policy meeting. It will also keep buying USD 120 billion in Treasury and mortgage bonds each month until more progress is made.

Fuel prices unchanged

Petrol and diesel prices remained unchanged across the country for the twelfth straight day on Thursday.

With no change in prices on Thursday, in Delhi, petrol continues to be sold for Rs 101.84 per litre, while diesel is also being sold at the unchanged price of Rs 89.87 a litre.

In Mumbai, where petrol prices crossed Rs 100 mark for the first time ever on May 29, the fuel price is at Rs 107.83 per litre. Diesel price in the city is also at Rs 97.45, the highest among metros. In Chennai, petrol is priced at Rs 102.49 per litre while the price of diesel is Rs 94.39 per litre. The price of petrol in Kolkata is Rs 102.08 per litre while diesel is sold at Rs 93.02 per litre.

International oil benchmark Brent crude advanced 0.30 per cent to $74.09 per barrel.

Quarterly earnings today

Tech Mahindra, Colgate-Palmolive (India), AAVAS Financiers, ADF Foods, Aegis Logistics, Ajanta Pharma, CCL Products, Continer Corporation of India, Dhanuka Agritech, Dwarikesh Sugar Industries, Eris Lifesciences, Future Retail, GHCL, Home First Finance Company India, Indus Towers, JK Lakshmi Cement, Jindal Stainless (Hisar), Jyothy Labs, Laurus Labs, LIC Housing Finance, Mahindra Holidays & Resorts India, Motilal Oswal Financial Services, Oberoi Realty, Parag Milk Foods, Punjab & Sind Bank, PVR, Rayomnd, Shoppers Stop, Shriram City Union Finance, TVS Motor Company, Union Bank of India, Vaibhav Global, and Welspun Corp will release their quarterly earnings today.

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