Indian equities in Tuesday's trade after a 13-day winning day streak started lower tracking mixed Asian markets. At the open, Nifty started trade lower by 0.07 per cent or 18.6 points at 25,260.1, while the BSE 30-share Sensex was down 0.03 per cent or 27.48 points at 82,532.36.

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Prashanth Tapse, Senior VP (Research), Mehta Equities said, "Nifty and Sensex reached new all-time highs at 25333.65 and 82725.28 respectively, with FIIs showing renewed buying interest, net purchasing Rs 9,217 crore last week and Rs 1735 crore yesterday."

Investors are optimistic, expecting a 50bps Fed cut in September and focusing on the upcoming US jobs report, added Tapse.

Defense stocks are in focus in Tuesday's session as amid tthe growing standoff with China, the Defence Ministry is set to undertake major projects, including the construction of seven advanced frigates for the Indian Navy and the Indian Army's proposal to replace its T-72 tanks with modern Future Ready Combat Vehicles (FRCVs).

 Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "There are two distinct trends in the market now which can be observed In the secondary and primary markets. In the secondary market, recently, there is a positive trend with high quality stocks being accumulated and moving up. Bajaj Finance, ITC, Bajaj Auto and Maruti are examples of this healthy trend. At the same time there is froth in segments of  mid and small caps where valuations are hard to justify.
 
The other trend is the totally irrational moves in the SME IPO market where many SMEs of doubtful credentials are getting their IPOs oversubscribed many times and the stocks on listing are manipulated and driven to upper circuits for days. Due diligence is conspicuous by its absence. Many retail investors, driven by greed, are rushing into this gambling game. This will end in tears for the newbies who have no understanding of market fundamentals.