“There are conflicting signals that might influence the markets in the short-term. Rise in US 10-year bond yield is a negative for emerging markets like India, particularly if this trend sustains and gathers momentum, going forward. Rise in Brent crude to $80 is a negative for India’s macros," Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services said.
“We are witnessing sectoral rotation in Indian markets now. Buying in banks and autos is a reflection of increasing confidence in the domestic economy theme. There is profit booking in IT since the segment has given excellent returns of 82 percent one-year return. Markets might consolidate for a while before making a decisive move," he said.
On NSE, Coal India was the top gainer with 2.36 per cent gain, followed by SBI with 1.78 per cent gain, Ultra cement with 1.40 gain, NTPC with 1.34 per cent gain, Hindustan Unilever with 1.34 per cent. On the flipside, HCL Tech was the top loser, the scrip shed 2.07 per cent. In the losers pack, Infosys, Tech Mahindra, Wipro, Cipla lost in the range of 1.54 per cent to 1.04 per cent. On BSE, Hinduatan Oil Exploration , IndiaGlyco, GSFC, Nelco were the top gainers, gaining in the range of 4.21 per cent to 3.43 per cent. However, Persistent, Cadila Health, KPR Mill, InoxLeisure, Bajaj Holding were among the laggards.
Sectorally, Nifty PSU Bank was the top gainer with 1.23 per cent gain. Nifty Metal, Nifty FMCG, Nifty Auto were the gainers. Nifty IT was the top loser and the scrip shed by 1.26 per cent. On BSE MidCap was down 0.21 per cent and BSE SmallCap was down 0.31 per cent.
“Domestic equites do not look to be inspiring as of now. Benchmark indices outperformed global markets in recent week as favourable FOMC meeting outcome and sustained recovery in key economic indicators bolstered investors’ confidence. Notably, tax collection data for 1HFY21 looks quite impressive, which virtually crossed pre-pandemic FY20 numbers with a wide margin. This along with government’s borrowing target of Rs5.03trillion (mostly on expected line) certainly bodes well for economy and bond markets. However, investors remain on tenterhook with regards to progress on Evergrande," Binod Modi, head strategy at Reliance Securities said.
“Additionally, ease of retail inflation at 5.3 per cent for August bodes well as this should essentially aid RBI to maintain its soft monetary policy stance to support ongoing recovery in economic momentum. In our view, while 1QFY22 GDP growth 20.1 per cent indicating a sharp recovery, there has been sharp contraction in sequential comparison due to second wave of COVID-19 and growth is still lagging from pre-pandemic level," he added.
Indian market taking mixed global cues, on Tuesday, Asian shares also fell fretting over China’s Evergrande’s group’s unsolved debt crisis. The MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.13 per cent lower on Tuesday, following a mixed session on Wall Street. In early trade Tuesday, Australia’s benchmark S&P/ASX200 index was down nearly 1 per cent, while Japan’s Nikkei was off 0.6 per cent.
China’s blue chip index CSI300 edged up 0.1 per cent at the open, as Hong Kong’s Hang Seng Index gained 0.44 per cent. However, the US Stock markets also acted in cautious manner, the Dow Jones Industrial Average futures fell just 20 points. S&P 500 futures were flat, and Nasdaq 100 futures fell 0.2 per cent.