The Indian equity benchmark indices, Sensex and Nifty opened flat Thursday amid mixed global cues. The Benchmark BSE Sensex opened at 55,988, down 44,2 points or 0.08 percent while the Nifty50 index opened at 16,627.95, down 6.70 points, or 0.04 percent. Broader markets, midcap and smallcap indices opened higher. Among sectors, Nifty IT, Nifty FMCG and Nifty Realty opened higher, while selling is seen in pharma, banks and auto indices. Asian Paints, HDFC Life, Tata Consumer PDTS, Adani Ports, HCL Tech were the top gainers on Nifty in early trade. Airtel, SBI shares down 1.5 per cent in early trade while Adani Transmission scrip rose 5 per cent.
“Despite the rich valuations and the uncertainty surrounding COVID, markets continue to be resilient in the developed world, especially the mother market US. The S&P 500 and Nasdaq set another record yesterday. Among emerging markets, India is the clear outperformer with Nifty returning 18.97 per cent YTD. This is in sharp contrast to the poor returns YTD in other emerging markets like Indonesia and Brazil and negative returns in markets like Malaysia and the Philippines,” Dr V K Vijaykumar, chief investment strategist at Geojit Financial Services said.
Meanwhile, everyone is looking up to the Federal Reserve Chair Jerome Powell’s Jackson Hole speech Friday morning in which he could give hints about tapering the Fed’s $120 billion asset purchases that propelled the Covid-19 hit economy.
According to Dr VK Vijaykumar, Stability in the US market indicates that the market doesn’t expect any market-moving announcements from the Fed at the Jackson Hole symposium.
“Therefore, if the Fed chief makes any mildly hawkish statement regarding the normalization of monetary policy or tapering on August 27th, markets may respond negatively to that,” Dr Vijaykumar believes.
At 1132 IST, the benchmark S&P BSE Sensex was trading in the green at 56,080, up 0.31 per cent, and the BSE midcap was up 0.22 per cent and BSE small cap was 0.45 per cent. Similarly, theNifty50 was trading at 16669.30, up 0.21 per cent. On NSE, Nifty bank was up 0.21 per cent, Nifty FMCG was up 0.97 per cent,Nifty Auto was down 0.31 per cent.
Ahead of Powell’s speech, Japan’s Nikkei gained 0.04%, Korea’s Kopsi was little affected by the central bank hike, falling 0.31%, Hong Kong’s Hang Seng index ends down 0.13%, China’s Enterprises index HSCE falls 0.25% on Thursday
Mohit Nigam, head – PMS, Hem Securities, “Asian stocks showed mixed performance this morning as traders await more clarity on the regulatory outlook in China as well as the Fed’s approach to paring stimulus. South Korean market pared gains as Bank of Korea makes the first ever post pandemic move to hike interest rate of 7-day repurchase rate from 0.5% to 0.75%.Crude is settling around 67.8 levels while Gold futures falls a little below 1800 dollars. On the technical front, 16,300 and 16,750 are immediate support and resistance in Nifty 50.”
The benchmark index S&P 500 BSE Sensex opened in the green on Wednesday and soared to an all-time high at 56,102 while NSE Nifty50 also opened in the positive territory to jump to 16,676 mark. The SGX Nifty signals a negative start for the Indian equities. At 0707 IST, Nifty future was trading at 16,650, down 30 points or 0.18 per cent. Asian bourses like Japan fluctuated, while Australian bourses slipped, apart from Asian equities, US equity also slipped after key indices S&P500 and Nasdaq jumped to record overnight.
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