FIRST TRADE: Equity barometers open on a subdued note; Nifty holds on to 25,000 levels

Indian equities tracking weak global cues are likely to start Tuesday's trading session (August 27) on a mildly negative note. At around 9:16 am, Nifty traded weak by 0.01 per cent at 25,007.4, while Sensex was down 0.05 per cent at 81,657.77 

Prashanth Tapse, Senior VP (Research), Mehta Equities said Nifty and Sensex continue their upward surge unabated, with Nifty marking seven consecutive days of gains. Bulls celebrate as Nifty surpasses the psychological milestone of 25,000 once again, eyeing an all-time-high target of 25,078.30. 

The market's optimism is bolstered by Jerome Powell's clear signal of potential rate cuts, expected at the Fed's September meeting, contingent on upcoming inflation and employment reports. Amidst this bullish backdrop, all eyes also turn to Nvidia's earnings report and its potential impact on tech stocks. 

Sectorally, metal, realty, auto and private bank indices traded with marginal cuts, while all other indices were in the green, with the pharma and PSU Bank leading the gains.

Meanwhile, Nifty's crucial support rests at 24,750, added Tapse.

IT stocks in India are likely to mirror the performance in the US markets in the overnight trade as investors await the crucial earnings by Nvidia Corporation. 

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "The strongest tail wind comes from the expected rate cuts by the Fed which will spill over to other central banks including the RBI. The Indian economy now needs monetary stimulus through rate cuts and this is likely in the next policy meeting," he added.
 
If geopolitical tensions cause dips in the market, DIIs and retail investors are likely to buy that dip. Financials, particularly banking and other rate sensitives like housing and automobiles are the likely preferred sectors for institutional buying. Investors can use weakness in the market to buy leading banking stocks and other rate sensitives in these segments. Segments like paints, adhesives and tyres which use crude as inputs will turn weak.

Stocks in focus:

Paytm: Paytm shares traded 1.7 per cent higher even as the SEBI issued a notice to the firm. 

DMart: DMart company shares traded with marginal gains of 0.5 per cent at Rs 4,987 even as CLSA maintained its outperform rating on the stock with a raised target.