Opening Bell: Nifty, Sensex open flat; auto gains, FMCG, IT stocks drag
The Indian markets opened flat amid mixed global cues on Tuesday
The Indian markets opened flat amid mixed global cues on Tuesday. Benchmarks Nifty50 and the Sensex opened around their previous closings as two IPOs (Delhivery and Venus Pipes) is set to make debut on exchanges and (Aether Industries) will open for subscription on Tuesday. The broader Nifty 50 opened above 16, 200 and the Sensex around 54,300. outperforming benhmarks, Nifty midcap and smallcap rose 0.3% and 0.4% respectively in the opening trade.
Sectorally auto, PSU Bank outperformed as FMCG, IT saw some selling pressure in the early trade.
"There is no distinct trend in this whipsaw market. Daily trading for the near-term is fraught with high risk. It would be better for investors to wait for the markets to consolidate. However, long-term investors can use the volatility to buy high quality stocks available at attractive valuations," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Financials, particularly leading banks, are value buys now, he says. Most of these stocks are trading at depressed valuations because of relentless FPI selling, said the expert.
"Paradoxically, their fundamentals are improving. Credit growth in the economy is impressive and asset quality of banks has improved substantially. Leading banks are well capitalised to profit from the rebound in the economy and pick up in credit growth. So, for investors with a medium to long-term perspective, financials provide a good buying opportunity," suggested Vijaykumar.
CEOs of Indian IT majors in their recent interviews in Davos have reiterated the strong demand and earnings visibility for the segment, he highlighted. So, IT stocks also are good long-term investment now even though valuations are not cheap, the expert added.
In the pre-open, the Sensex was trading marginally lower by 43 points as 22 shares advanced and 8 declined on the 30-shares index.
Earlier, cues from Asian markets were mixed on Tuesday. SGX Nifty, which hints at opening trend for the domestic market, was trading over 50 points higher in the early trade on the Singaporean exchange on Tuesday. Japanese Nikkei 225 was trading lower by 0.2%, Hang Seng Index at the Hong Kong Exchange and Chinese Shanghai Composite were trading flat with positive bias.
On Monday, all three major U.S indices ended higher amid gains from banks and a rebound in market-leading tech shares. Dow Jones ended nearly 2% higher, Nasdaq settled with around 1.6% gain and S&P 500 added over 1.8% on Monday's closing.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
09:33 AM IST