The key benchmark indices Sensex and Nifty opened fairly positive on Friday after being subdued amid a global sell-off in the last one week. At 9:22 am, the 30-share BSE Sensex jumped 579 points or 1.01 per cent to 57,856; while the broader NSE Nifty moved 153 points or 0.89 per cent higher to 17,263.
Equity benchmark Sensex tumbled 581 points on Thursday, in tandem with a global selloff after the US Federal Reserve signaled policy tightening from March. However, on Friday traded higher in opening deals led by buying in all sectors amid positive global cues.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “There are three trends in the market which are important from investors’ perspective. One, relentless massive selling by FIIs ( around Rs 33000 cr so far in Jan) is emerging as the strongest headwind to the market in the short run. Two, there is massive churn happening within the Nifty from tech to banking and to a lesser extent to autos. Three, over-valued growth stocks are getting punished and their valuations are slowly getting to realistic levels. These trends provide opportunities to investors.”
Among the Sensex-30 shares, NTPC, Tata Steel, Bharti Airtel, Titan, Wipro, Bajaj Finance, IndusInd Bankand M&M were the top gainers. In the broader markets, the BSE MidCap and SmallCap indices were also in the green zone, up over 1 per cent each, respectively.
Sectorally, all Nifty indices were trading higher with the Nifty Realty, IT, Metal, Auto, Oil & Gas PSU Bank and Pharma indices being top gainers, up 1-1.9 per cent.
“The first day of the February expiry series is expected to begin with markets staying flattish around the 17,100 levels. The fall seen in the January expiry has kept the markets above the significant 17,000 levels on a closing basis. With the budget round the corner along with the expectations of people’s budget to prove beneficial for the UP elections. Needs to be watched closely. The Asian indices saw some positive turn after the losses on account of the tighter monetary policy from the US fed,” said Mohit Nigam, Head – PMS, Hem Securities.
He further said: “With Nifty keeping strong support at 17,000, the resistance seems to be 17,400 for the near term. While bank Nifty. Markets seem to provide strong positive momentum post the budget so advise investors to stay put in the volatile times for better returns in the near term.”
Global cues
Hong Kong shares opened slightly higher Friday morning as traders struggled to cap a painful week on a slightly optimistic note, following another tepid performance on Wall Street as US rate hike fears hurt sentiment. The Hang Seng Index edged up 0.05 per cent, or 11.94 points, to 23,818.94. The Shanghai Composite Index climbed 0.39 per cent, or 13.35 points, to 3,407.59.
Tokyo’s key Nikkei index opened higher on Friday, rebounding from sharp losses in the previous session. The benchmark Nikkei 225 index rose 1.17 per cent, or 307.38 points, to 26,477.68 in early trade, while the broader Topix index added 1.22 per cent, or 21.88 points, to 1,864.32. It came after Tokyo shares plunged more than three percent on Thursday, following US Fed Chair Jerome Powell’s announcement that a rate hike was likely in March.
Another volatile day of trading on Wall Street ended Thursday with stocks closing lower after giving up an early rally. The late-afternoon fade extended the market’s losing streak as it closes in on its fourth weekly loss. The S&P 500 fell 23.42 points to 4,326.51, its third straight decline. The Dow fell 7.31 points to 34,160.78. The Nasdaq dropped 189.34 points to 13,352.78. The Russell 2000 fell 45.18 points to 1,931.29.
Oil prices eased after Brent crude hit a seven-year high above $90 a barrel, as the market balanced concerns about tight worldwide supply with expectations the U.S. Federal Reserve will soon tighten monetary policy.
Benchmark Brent fell 15 cents to $89.81 a barrel, while U.S. crude fell 20 cents to $87.15 a barrel in a volatile session with both contracts see-sawing between positive and negative territory.
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Source: News18