Indian equity benchmark indices Sensex and Nifty opened flat on Thursday amid mixed global signals. The BSE Sensex benchmark 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, mid-cap and small-cap indices opened higher. Among the sectors, Nifty IT, Nifty FMCG and Nifty Realty opened higher while pharmaceutical, banking and auto indices saw sales. Asian Paints, HDFC Life, Tata Consumer PDTS, Adani Ports, and HCL Tech were Nifty’s top winners in early trading. Airtel, SBI shares lost 1.5 percent in early trading while Adani Transmission-Scrip rose 5 percent.
“Despite the high ratings and the uncertainty associated with COVID, the markets in the industrialized countries, especially in the US parent market, remain resilient. The S&P 500 and the Nasdaq set another record yesterday. India is the clear outperformer among emerging markets, with Nifty posting a return of 18.97 percent YTD. This contrasts sharply with poor YTD returns in other emerging markets such as Indonesia and Brazil and negative returns in markets such as Malaysia and the Philippines, “said Dr. VK Vijaykumar, chief investment strategist at Geojit Financial Services.
In the meantime, everyone is looking to the Jackson Hole Friday morning speech by Federal Reserve Chairman Jerome Powell, in which he could provide clues on how the Fed’s $ 120 billion asset purchases, the Covid- 19 affected economy could be scaled back.
According to Dr. VK Vijaykumar suggests the stability of the US market indicates that the market does not expect any market-moving announcements from the Fed at the Jackson Hole Symposium.
“If the Fed chief makes a slightly restrictive statement on the normalization of monetary policy or the throttling on August 27, the markets could react negatively,” believes Dr. Vijaykumar.
At 1132 IST, the benchmark S&P BSE Sensex was in the green at 56,080, up 0.31 percent, and the BSE Midcap rose 0.22 percent and the BSE Small Cap was 0.45 percent. Similarly, the Nifty50 traded at 16,669.30, up 0.21 percent. On the NSE, Nifty Bank rose 0.21 percent, Nifty FMCG rose 0.97 percent and Nifty Auto rose 0.31 percent.
Before Powell’s speech, Japan’s Nikkei gained 0.04%, Korea’s Kopsi was unaffected by the central bank’s rate hike and fell 0.31%, Hong Kong’s Hang Seng index ended 0.13%, China’s HSCE index fell 0.25% on Thursday
Mohit Nigam, Head – PMS, Hem Securities: “Asian stocks showed mixed performance this morning as traders expect more clarity on the regulatory outlook in China and the Fed’s approach to reducing stimulus. The South Korean market reduced profits as the Bank of Korea took the first post-pandemic step to raise the 7-day buyback rate from 0.5% to 0.75%. Crude oil is hovering around 67.8 while gold futures are falling a little below $ 1,800. On the technical front, 16,300 and 16,750 are immediate support and resistance at Nifty 50. “
The benchmark index S&P 500 BSE Sensex opened in the green on Wednesday, climbing to an all-time high of 56,102, while NSE Nifty50 also opened in positive territory, climbing to 16,676. The SGX Nifty signals a negative start for Indian stocks. At 0707 IST the nifty future was trading at 16,650, down 30 points or 0.18 percent. Asian exchanges such as Japan fluctuated, while Australian exchanges, along with Asian and US stocks, fell after key indices S & P500 and Nasdaq rose to record highs overnight.
Here in India, however, aside from the Jackson Hole Symposium and expectations for the expansion of the stimulus, Indian GDP data released this week is also weighing on market sentiment.
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