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Updated on: Monday, August 16, 2021, 10:11 AM IST

Stock markets open on flat note amid mixed global cues

At 09:17 AM, the Sensex was down 80.41 points or 0.15 percent at 55,356.88.  | ANI Photo

At 09:17 AM, the Sensex was down 80.41 points or 0.15 percent at 55,356.88. | ANI Photo

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The stock markets opened flat on Monday after exchange clearing houses mark settlement holiday today, 16 August 2021, on account of Parsi New Year.

Equity benchmarks Sensex and Nifty opened on a choppy note on Monday tracking profit booking at higher levels and a weak trend in global markets.

At 09:17 AM, the Sensex was down 80.41 points or 0.15 percent at 55,356.88. The Nifty was down 25.90 points or 0.16 percent at 16,503.20. About 1,011 shares have advanced, 1,107 shares declined, and 100 shares are unchanged.

After dropping over 100 points in the opening session, the 30-share index turned flat. It was trading 20.92 points or 0.04 per cent lower at 55,416.37, while the broader NSE Nifty slipped 11.50 points or 0.07 per cent to 16,517.60.

PowerGrid was the top loser in the Sensex pack, shedding over 1 per cent, followed by Bajaj Auto, Maruti, Dr Reddy''s, Asian Paints and Titan.

On the other hand, M&M, Tata Steel, TCS and Tech Mahindra were among the gainers.

In the previous session, Sensex jumped 593.31 points or 1.08 per cent to its new all-time high of 55,437.29, and Nifty breached the 16,500 level, advancing 164.70 points or 1.01 per cent to its fresh closing peak of 16,529.10.

Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 819.77 crore on Friday, as per provisional exchange data.

Benchmark indices opened on a choppy note amid profit-booking at fresh peaks, said experts.

According to Binod Modi Head-Strategy at Reliance Securities, while benchmark Nifty and Sensex witnessed strong rebound last week, it was not a broad-based rally considering heavy selling pressure in midcap and smallcap stocks, said PTI.

June quarter earnings were impressive, and a number of companies succeeded to beat consensus estimates, which offered comfort to the market, he noted.

The sharp improvement in key economic indicators like GST collection and auto sales volume indicate sustainable rebound in corporate earnings in subsequent quarters. This should aid the market to sustain premium valuations, he added.

Asian markets open on cautious note

Asian share markets made a cautious start to the week on Monday ahead of a raft of Chinese data that could confirm a slowdown in the giant economy, as much of the world races to stem the spread of the Delta variant of COVID-19 with vaccinations.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade, having hit its lows for the year last month. Japan’s Nikkei fell 1.2 percent, though economic growth pipped forecasts for the June quarter.

Consumer-sentiment index

The University of Michigan consumer-sentiment index fell sharply to 70.2 in August from 81.2 in prior month, marking the lowest level since December 2011, and momentarily knocking the wind of the market’s bullish sails.

Fuel prices unchanged

Petrol and diesel prices continued to remain steady across the country for the 30th straight day on Monday.

On Monday, petrol in Delhi continued 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.

Across the country as well, fuel prices remained unchanged providing some relief to consumers already feeling the heat of higher inflation that has raised prices of several other commodities including food items.

In Mumbai, where petrol price 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 Kolkata, petrol is sold for Rs 102.08 a litre and diesel is priced at Rs 93.02 per litre.

Petrol price in Chennai was unchanged after Rs 3 drop on Saturday in compliance with the state government's order of a tax cut on the fuel. Petrol was retailed at Rs 99.47 per litre on Monday. Diesel price also remained unchanged at Rs 94.39 per litre in Chennai.

International oil benchmark Brent crude fell 1.06 per cent to $69.84 per barrel.

Crude oil declines

After soaring in the first half, crude oil’s rally has started to fray since mid-July. The spread of delta, including in key consumer China, has undermined the outlook for consumption as restrictions on mobility are reintroduced. At the same time, OPEC+ has proceeded with plans to gradually increase production, rolling back the supply curbs it imposed in the early days of the pandemic.

KFC & Pizza Hut operator Devyani International is expected to make a stellar debut on bourses on August 16 with most analysts expecting more than 50 percent listing gains.

Dollar under pressure

The US dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.57 percent to 92.51.The dollar is on course for weekly loss Friday, pressured by a sharp decline in yields, but bets on the greenback have swelled to more than five-month highs as investors believe that the Federal Reserve is on course to rein in lose monetary policy measures by year-end.

The US dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.57 percent to 92.51.

The value of the net long dollar position rose to $3.08 billion in the week ended August10, from $2.11 billion the prior week, according to data from CFTC and Reuters. That was the highest level since early March.

Devyani International debut on bourses today

KFC & Pizza Hut operator Devyani International is expected to make a stellar debut on bourses on August 16 with most analysts expecting more than 50 percent listing gains.

The Rs 1,838-crore public issue was oversubscribed by 116.71 times during April 4-6. Qualified institutional investors' reserved portion was subscribed 95.25 times, non-institutional investors part was subscribed 213.06 times, and the portion set aside for retail investors witnessed 39.52 times subscription. Employees' portion was subscribed 4.7 times.

Eight stocks under F&O ban

Cadila Healthcare, Canara Bank, Indiabulls Housing Finance, NALCO, Punjab National Bank, RBL Bank, SAIL and Sun TV Network - are under the F&O ban

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Published on: Monday, August 16, 2021, 09:21 AM IST
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