EARLY TRADE: Indexes open off despite positive Asian markets; The highest value is 23754
Indian shares started the session on Tuesday (December 24) on a strong note. Meanwhile, the NSE Nifty50 index opened 0.8 points higher at 23,754.25, while the BSE 30-share Sensex rose 0.01 percent or 11.24 points to 78,551.41.
Broader markets, on the other hand, underperformed each headline index down 0.04 percent at the last count.
By sector, in the mixed period, Realty, Oil & Gas, Media, Banking and Auto indices traded with small gains, while Metal and Pharma stocks were the top contenders.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “The relief rally seen yesterday is unlikely to continue freely in the coming days. Two sets of factors – external and internal – will prevent a stable rally. Externally, the strong Dollar and high bond yields in the US will encourage FIIs to sell in circles. Inside, the growth and decline in income will be negative factors in the near future, catching the bulls.”
High valuations in the market on this big backlog cannot favor PE expansion which could take the market much higher, added Vijaykumar.
The Nifty is expected to trade volatile, and the next big movers will come in January during the Q3 earnings season. Until then, the market rally may continue unless FIIs return to buying, said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Stocks to watch
SBI Card: After Morgan Stanley maintained an equal weight call on the stock, it traded with a negative bias at Rs 691.25.
Sagility India: The stock in early trade marked a fresh 52-week high of Rs 48.93 per share as JP Morgan initiated its coverage on the stock with an ‘overweight’ rating.
Telecom Stocks: In the interest of its subscribers, TRAI has asked the telecom companies to give special mandate for voice and SMS prepaid voucher. On the development, shares of Airtel and Vodafone Idea were trading up to 1.5 percent.
Asian markets
Asian stocks were trading mostly in the green on the back of gains in tech stocks as tech stocks in the US clawed back some of their biggest losses from last week. The benchmark MSCI Asia ex Japan index traded up 0.51 percent at 575.74.
