The BSE Sensex was trading at 82,150 points, up 365 points or 0.45%. The Nifty 50 was at 25,150, up 98 points or 0.39%, around 1:05 pm.
Despite the rally, the market capitalisation of all listed companies on the BSE declined by nearly Rs 1 lakh crore to Rs 462.1 lakh crore.
On the sectoral front, Nifty Bank, Financial, IT, Consumer Durables, and Oil & Gas sectors surged, while Nifty Auto, Media, Metal, Pharma, and Realty sectors saw declines. In the broader market, both the Nifty Midcap 100 and Nifty Smallcap 100 fell by 0.7%.
The benchmark Nifty 50 hit a record high on Wednesday but pared gains as profit booking across most sectors limited advances in IT stocks.Among individual stocks, PB Fintech gained 3.3% after 2.1% of its equity shares were traded in a block deal.Paytm shares surged 5% after the company received government approval for investment in its payments arm.Investors are now focusing on the preliminary estimate of U.S. gross domestic product for the second quarter, due later in the day, and the U.S. Federal Reserve’s preferred gauge of inflationβthe core personal consumption expenditures (PCE) indexβon Friday, for clues on the central bank’s rate easing plans.
Experts View
“Weak global cues and the consequent weak openings have proved to be opportunities to buy in the domestic market. This pattern may persist. A significant feature of the near-term market trend is that it is resilient and steadily moving up without sharp spurts thereby preventing a spike in valuations in the largecap category,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“The recent accumulation of IT stocks stems from the confidence that the soft landing scenario in the US economy will lead to execution of the orders on which the IT companies have been sitting for some time now,” Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, “Nifty can find support at 25,000 followed by 24,950 and 24,900. On the higher side, 25,100 can be an immediate resistance, followed by 25,150 and 25,200.”
Global Markets
Asian markets opened lower, dragged down by technology stocks. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6% as tech stocks dragged. The Nikkei eased 0.4% while South Korea dropped 0.7%.
Wall Street equities closed lower overnight as chipmaker Nvidia’s better-than-expected results failed to impress some investors.
Nvidia’s third-quarter revenue forecast of $32.5 billion surpassed Wall Street estimates, but the results still failed to impress the most bullish investors, who have driven a dizzying rally in its shares. Shares of the AI darling slumped 7.6% in after-hour trading, losing about $236 billion of its market value.
FII/DII Tracker
The foreign institutional investors (FIIs) turned net sellers on August 28 as they sold equities worth Rs 1,347 crore, while domestic institutional investors bought equities worth Rs 439 crore on the same day.
Crude Oil
Oil prices edged up on Thursday after two sessions of losses, as supply concerns over Libya returned to focus, although countered by a smaller-than-expected draw in U.S. crude inventories that sapped demand expectations.
Brent crude futures climbed 9 cents, or 0.11%, to stand at $78.74 a barrel, while U.S. West Texas Intermediate crude futures were up 15 cents, or 0.2%, at $74.67.
Currency Watch
The Indian rupee rose 8 paise to 83.89 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.16% to 100.93 level.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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