Desk
Share
Indian's benchmark indices – Nifty and Sensex– opened positive today ending their four-day losing streak as the easing CPI inflation to a four-month-low of 5.22 percent boosted investor sentiment. More experts expect that inflation will further moderate, thus shifting the focus of the MPC includes a 25 basis points rate cut in February given the slowing growth indicators.
At 10:00 AM the Sensex climbed higher by 265.14 points or 0.35 percent at 76,595.15 and Nifty gained 73.05 points or 0.32 percent at 23,159. The advancing shares stood at 2,166, declining shares at 978 while 118 shares remained unchanged.
Consequently, HCL Tech's worst Q3 result was the primary driver of the IT stocks' negative open, while metals and PSU bank shares became the key winners. This comes after the frontline indices plummeted over 1 percent each, resulting in a reduction in market capitalization expansion by Rs 12.39 lakh crore.
Market analysts opine that the market is a bit oversold which means a potential recovery that is close in time is on the cards. On the other hand, it is highly anticipated that any recovery will be of brief duration due to various reasons such as the US 10-year bond yield standing at over 4.7 percent, uncertainty around the ex-president Trump’s approach after 20th January, deceleration of the Indian economy, lackluster corporate earnings and an outlandish surge in crude oil prices as the brent is above $87.
Mid and small cap stocks saw a much needed recovery with 1.7% and 1.5% profits respectively. According to Aishvarya Dadheech, CIO and Founder of Fident Asset Management, While mid and small cap stocks do have some headwinds, it appears that Nifty and large cap stocks are close to oversold levels. The broader market has had a difficult start to the year and is already down by almost 10% which in itself indicates bearish sentiment.
In the sectoral indices, Nifty IT was the only underperforming sector which lost almost 1 percent after HCL Tech reported weak Q3 numbers. The PSU Bank index ended its losing streak of four days as it rose nearly 2 percent, driven by SBI and Bank of Baroda. Also on January 14, Nifty reality which fell by 6 percent on the previous day rose by 1 percent as well Auto and Nifty Bank and Oil and Gas sectors.
