FIRST TRADE: Sensex rises nearly 600 pts; Nifty above 21,600 amid strong global cues

Stock market today: Domestic equity indices Sensex and Nifty50 edged higher on Friday, January 19, tracking Asian peers after data bolstered bets of a soft landing for the US economy. Last seen, both indices soared over 0.65 per cent. The S&P BSE Sensex rose 522.55 points to 71,709.41, and the NSE Nifty was up 147.85 points to 21,610.1.

"An important trend in the market that has implications for retail investors is the revival of the tug of war between FIIs and DIIs. FPIs have sold equity massively for Rs 20,480 crore during the last two days. This is partly in response to the rising bond yields in the US, where the 10-year yield has risen to 4.16 per cent and partly due to the high valuation in the Indian stock market," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Since the largest chunk of FII AUM is in banks, they have been selling in banks, mainly HDFC Bank. Investors should remember that in the tug-of-war between FIIs and DIIs in recent years, DIIs have always won in the medium- to long-term, even though FII selling can cause short-term pain. FII selling due to external factors has always been an opportunity to buy, the expert added.

Meanwhile, Nifty Mid Cap 100 and Small Cap 100 opened in firm positive territory. High-beta Nifty Bank was up 0.92 per cent at 46,134.5.

Dr. Vijayakumar added that mid-and small-cap segments are strong despite excessive valuations because there is sustained buying and no selling pressure from FIIs. This anomaly will be corrected in due course.

BUZZING STOCKS

Poonawalla Fincorp shares were up over 5 per cent after the company posted good Q3 numbers.

Home First Finance Company shares were up over 3 per cent after the company posted good results for the third quarter.

Conversely, Metro Brands shares slipped over 3 per cent after it posted operationally weak Q3 results.

Shoppers Stop shares were down nearly 3 per cent after the company posted operationally weak numbers.

Dixon Tech shares slipped over 3 per cent after the Directorate of Revenue Intelligence (D.R.I.) conducted a search with respect to the classification of the raw material imported for manufacturing one of the products at the manufacturing facility of one of the subsidiary companies in Noida.

GLOBAL MARKETS

Asian shares bounced on Friday, buoyed by a rally in regional chipmakers, while the yen was set to end the week with heavy losses as investors pared back bets that the Bank of Japan would soon abandon its uber-easy policies.

MSCI's broadest index of Asia-Pacific shares outside Japan rallied 0.9 per cent on Friday but was still down 2.9 per cent for the week, the biggest weekly loss since mid-August.

(With inputs from agencies.) 

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