Sensex wipes morning losses to trade 40 points up

0
38
Sensex wipes morning losses to trade 40 points up


NEW DELHI: Selling in Reliance Industries and select banking names kepts benchmark indices subdued on Thursday as dashed hopes of an increase in relief checks that the US government is in process of doling out.

Besides that, detection of tens of new strains of virus cases in India and other parts of the world also seems to be having an effect. However, massive FII flows are keeping markets upbeats and losses in check.

“Investors may partially book some profit but remain invested in high-quality names, particularly in private sector banking, IT, telecom, pharma & consumer goods. An undesirable recent trend is, a slight decline in SIPs. In a market like this, it is important to continue with SIPs,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Factors driving markets

  • No increase in relief checks: In a blow to US President Donald Trump’s demand for an increase in coronavirus relief checks to $2,000, Republican Senate Majority leader Mitch McConnell refused a quick vote on the bill, saying it had “no realistic path to quickly pass the Senate.”
  • New variants spreads rapidly: A highly infectious coronavirus variant originating in Britain continued to spread globally, with California reporting its first known case.
  • Vaccine approval: In a bid to help contain the fast-spreading pandemic, Britain on Wednesday became the first country to approve a vaccine developed by Oxford University and AstraZeneca .

How are the bluechips doing

After opening in the red, benchmark indices edged higher to trade in the green zone. At 9.53 am, BSE flagship Sensex was up 41 points or 0.09 per cent to 47,787. NSE benchmark Nifty followed and rose 5 points or 0.03 per cent to 13,987.
“The Nifty is trading very close to the 14,000 level – if it can sustain above this on a closing basis, we should anticipate it to go up further to levels closer to 14,100-14,150. The overall market remains bullish with a good support at the 13,550-13,600 zone. Traders must trail positions with strict stop losses,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

In the 50-share pack Nifty, Dr Reddy’s Laboratories was the biggest gainer, up 1.41 per cent. ONGC, ICICI Bank, Sun Pharma, Cipla, Tata Motors, HDFC, Divi’s Labs and Reliance Industries were among other gainers.

Shree Cements was the top loser in the pack, down 1.43 per cent. Ultratech Cement, Grasim Industries, GAIL, UPL, M&M, Tech Mahindra, NTPC, TCS and Eicher Motors were other losers in the pack.

Broader markets

Broader market indices traded with gains outperforming their headline peers in the morning trade. Nifty Smallcap index added 0.27 per cent while Nifty Midcap index slipped 0.21 per cent. Broadest index on NSE, Nifty 500 was up 0.06 per cent.

Whirlpool of India, BEL, Crompton Greaves Consumer, Rail Vikas Nigam, Firstsource Solution and Bharat Dynamics were among major gainers from the space while India Cements, Sterlite Tech, Heidelberg Cements, Dhani Services, GMR Infra and Mphasis were under selling pressure.

Global markets

MSCI’s gauge of Asia-Pacific shares excluding Japan rose 0.1 per cent to its latest peak, having explored fresh territory repeatedly late in the year. But year-end trading was typically thin.

Chinese blue chips rose 1.45 per cent on Thursday after official data showed that activity in China’s service and factory sector expanded in December, albeit both at a slower pace than the previous month. The Hong Kong benchmark also rose 0.26 per cent.

Australian shares fell 0.80 per cent after tighter restrictions on movement were announced in an effort to quash fresh Covid-19 cases. Markets in Japan and South Korea are on holiday. E-Mini S&P futures rose 0.10 per cent.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here