Opening Bell: Nifty holds on to 17,700, Sensex drops nearly 150 points; banking, financial stocks drag
Opening in line with the trends on SGX Nifty, the Indian domestic equity market started fresh session on a negative note amid weak global cues on Monday.
Opening in line with the trends on SGX Nifty, the Indian domestic equity market started fresh session on a negative note amid weak global cues on Monday. The broader Nifty50 opened near 17,700 and the Sensex declined nearly 150 points in the opening trade. Benchmark indices opened at 17,740.90 and 59,333.18 respectively.
However, Nifty mid cap and small cap indices outperformed the benchmarks as they edged higher by 0.4% in the opening trade.
Sectorally, banking and financial stocks were seen under pressure as they declined the most on Monday.
On Monday's opening, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said despite the headwinds from an increasingly hawkish Fed, the market is exhibiting technical strength as reflected in the Nifty trading above 100 and 200 day moving averages. The other important trend of the mid-cap index outperforming the Nifty is likely to continue, said the expert
An important factor supporting the market is the sustained flow into domestic equity mutual funds which has touched a record high of Rs 28464 crore in March, he said.
"The net inflow of Rs 164399 cr into domestic equity mutual funds in FY 22 along with strong retail buying has negated the massive FPI selling in FY 22. This new trend of domestic money outsmarting foreign capital is likely to be a major determinant of market trends, going forward. Q4 results, particularly of leading financials, and guidance from IT majors will influence the market in the coming days," added V K Vijayakumar.
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In the pre-open, the Sensex tanked more than 100 points as 13 shares advanced and 17 declined on the 30-share Sensex.
"Nifty closed higher at 17784 on Friday, while VIX ended at ~18-level. The Index witnessed buying interest from 17,600- level, as it continues to stay a momentum support on the downside, while positional support is seen at 17,400-level," said Viraj Vyas, Technical and Derivatives analyst at Ashika Broking.
"The Index needs to stage a faster retracement of the fall (18,100-17,600) to continue its upward recovery move with immediate resistance seen at the psychological 18,000-level, while positional resistance is seen at 18,200-18,100 zone. On weekly chart, the Index has formed a ‘Doji’, which signals indecision amongst the participants. Hence, only a follow through move with open interest addition is likely to signal a directional move," he added
Earlier, major Asian stock indices were trading lower on Monday as they slipped ahead of central bank meetings and U.S. inflation data. Japanese Nikkei 225 was trading lower by 0.7%, Hang Seng Index at the Hong Kong Exchange was down nearly 3% and Chinese Shanghai Composite was trading lower by around 2% in the early trade on Monday.
Hinting at negative trends for the Indian markets, SGX Nifty Futures too dropped more that 100 points on the Singaporean Exchange in Monday's early session.
The Dow Jones Industrial Average rose 137.55 points, or 0.4%, to 34,721.12, the S&P 500 lost 11.93 points, or 0.27%, to 4,488.28 and the Nasdaq Composite dropped 186.30 points, or 1.34%, to 13,711.00 on Friday's closing.
Opening in line with the trends on SGX Nifty, the Indian domestic equity market started fresh session on a negative note amid weak global cues on Monday. The broader Nifty50 opened near 17,700 and the Sensex declined nearly 150 points in the opening trade. Benchmark indices opened at 17,745.40 and 59,333.18 respectively.
However, Nifty mid cap and small cap indices outperformed the benchmarks as they opened higher by 0.4%.
Sectorally, banking and financial stocks were seen under pressure as they declined the most on Monday
In the pre-open, the Sensex tanked more than 100 points as 13 shares advanced and 17 declined on the 30-share Sensex.
Earlier, major Asian stock indices were trading lower on Monday as they slipped ahead of central bank meetings and U.S. inflation data. Japanese Nikkei 225 was trading lower by 0.7%, Hang Seng Index at the Hong Kong Exchange was down nearly 3% and Chinese Shanghai Composite was trading lower by around 2% in the early trade on Monday.
Hinting at negative trends for the Indian markets, SGX Nifty Futures too dropped more that 100 points on the Singaporean Exchange in Monday's early session.
The Dow Jones Industrial Average rose 137.55 points, or 0.4%, to 34,721.12, the S&P 500 lost 11.93 points, or 0.27%, to 4,488.28 and the Nasdaq Composite dropped 186.30 points, or 1.34%, to 13,711.00 on Friday's closing.
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