The benchmark indices opened flat on the stock markets today amid mixed global cues.
At 09:17 AM, the Sensex was up 150.95 points or 0.25 percent at 60,546.58. The broader Nifty was up 45.50 points or 0.25 percent at 18,048.80. About 1,799 shares have advanced, 515 shares declined, and 85 shares are unchanged.
At the opening bell, the early gainers were IndusInd Bank, HDFC, Tata Consumer Products, Hindalco Industries and Britannia Industries. Tata Steel, JSW Steel, Coal India, Bajaj Finance and Nestle India were major losers on the Nifty.
Nifty rose for the second consecutive session on Jan 10 and closed above 18,000. At close, Nifty was up 1.07 percent or 190.6 points at 18,003.3. In the process, Nifty was the best performing index in Asia.
Nifty rose well on January 10. Advance decline ratio was also well into the positive territory suggesting broad market gains. 17,812-17,905 is the support for the Nifty in the near term, while 18,109 could be a resistance.
Gold trades marginally higher
COMEX gold trades marginally higher near $1805/oz after a 0.1% gain yesterday. Gold trades higher amid choppy US dollar, retreat in bond yields from recent highs, mixed US jobs report, increasing virus concerns and geopolitical tensions, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities. However, weighing on price is Fed’s willingness to tighten monetary policy aggressively. Gold has continued to trade in a broad range of $1780-1830 and directionless trade may continue as market players await US inflation data to get more clarity on Fed’s monetary policy stance however hopes of faster rate hikes may keep US dollar supported and this may keep pressure on gold.
NYMEX crude trades higher near $78.5/bbl after a 0.8 percent decline on Monday which marked its second decline. Crude oil surged to November highs on supply concerns relating to Kazakhstan and Libya and firmness in US equity market. The momentum, however, halted as supply concerns eased and as equity markets turned choppy amid rising virus concerns and increased expectations of Fed’s monetary tightening. Crude may witness choppy trade however we may see some more correction if supply situation improves further and if equity markets correct, said Rao, Kotak Securities.
Delta Corp, Ganesh Housing Corporation, National Standard and Radhe Developers are to announce December quarter results today.
Asian stocks slip
Asian stocks slipped Tuesday ahead of a key inflation print stateside that’s expected to strengthen the case for tighter monetary policy. The Nikkei index fell 1.3 percent as trading resumed after a holiday on Monday. Australian stocks shed 0.8 percent, Taiwan lost 0.4 percent and Seoul lost 0.3 percent. Hong Kong ticked 0.1 percent higher and China's 300 index nudged up, Reuters said.
US stocks decline
The tech-heavy Nasdaq Composite Index eked out a slight gain in the final minutes of trading on Monday, after bearing the brunt of a broader stock selloff earlier in the day (down 2.7 percent at one point), while the S&P 500 and Dow industrials extended their losing streaks, with worries about Federal Reserve policy reverberating in financial markets.
The Dow Jones Industrial Average shed 0.45 percent, and the S&P 500 lost 0.14 percent. Technology stocks, which have soared in the past two years thanks in part to very low interest rates, led the falls early in the day but rallied later in the session to leave the Nasdaq Composite up just 0.05 percent, said Reuters.
The pan-European STOXX 600 index lost 1.48 percent and MSCI's gauge of stocks across the globe shed 0.26 percent.
Three Wall Street firms — Goldman Sachs Group Inc., JPMorgan Chase & Co., and Deutsche Bank AG — said they see the Fed delivering more than the three rate hikes that policy makers have penciled in for this year.
US traders brace for consumer price report
US traders also braced for a consumer-price report on Wednesday that could show a 7 percent headline year-over-year rise for December, a level which may not let up until the March reading.
The yield on the 10-year US Treasury note rose 1 basis point to 1.78 percent, the highest since January 17, 2020.
Net inflows into equity and equity-linked schemes at record high
Net inflows into equity and equity-linked schemes in India more than doubled over the preceding month to Rs 25,076.7 crore in December. Monthly SIP contributions hit a fresh high of Rs 11,305.34 crore. Around 12.54 lakh SIP accounts opened during the reported month.
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