FIRST TRADE: Equity indices open lower; Sensex down 147 pts, Nifty near 25,900
Equity markets open lower despite strong global mood as the markets witnessed some profit booking at the start.
Indian equities despite positive global cues opened lower in Wednesday's session amid slight profit-booking at higher levels. Nifty opened weak by 0.16 per cent or 42 points at 25,898.8, while the Sensex opened lower by 0.17 per cent or 147.23 at 84,766.81 points.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "The Chinese monetary stimulus measures lifted the Chinese and Hong Kong markets yesterday and if the rally continues FIIS may move more funds to invest in these markets which are highly attractive on valuations. In India metal stocks rallied in response to the Chinese stimulus measures.
The gush of domestic liquidity, which is the main driving force behind the rally in India, is likely to keep the market resilient. If Nifty is to go past 26000 decisively and sustain there, it has to be led by the Bank Nifty. There is more steam in this segment, added VijayKumar.
Sectorally, metal stocks remain in focus as globally base metals are witnessing record gains.
Prashanth Tapse, Senior VP (Research), Mehta Equities held that the monthly expiry on Thursday could result in sideways movement in intra-day trades, but bullish undertone and robust growth prospects going ahead would see the markets bounce back at regular intervals.
The key US US PCE inflation data to trickle in on Friday would be eyed, as this would provide some indication of future rate cut prospects, added Tapse.
Asian markets
Meanwhile, Asian markets have been trading with sharp gains after China's stimulus cheers. The MSCI Asia ex-Japan index traded with nearly 1 per cent gains.
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