Friday Fever! Sensex rose over 500 points and Nifty rose below 24,400 points. All sectors under pressure
The BSE Sensex was trading down 410 points, or 0.5 per cent, at 80,890. Nifty50 was trading at 24,435, down 113 points, or 0.46%, around 9:23 am.
India’s retail inflation eased to 5.48% in November after breaching the RBI’s 6% tolerance band in October as the arrival of fresh produce helped vegetable prices surge.
Food inflation, which accounts for about half of the overall consumer price index (CPI) basket, eased from 10.87% in the previous month to 9.04% in November. However, rural inflation surged to 9.10% from 6.68% in October, while urban inflation rose to 8.74% from 5.62% the previous month.
Among Sensex stocks, JSW Steel, Tata Steel, IndusInd Bank, L&T, Bajaj Finance and Bajaj Finserv were the worst performers, falling up to 2.5 per cent. On the other hand, only Tata Motors, HUL and Nestle India opened in green.
On the sectoral front, the Nifty Metal index fell 1.7% in early trade after Steel Minister HD Kumaraswamy announced on December 12 that the Center was considering imposing safeguard duties on steel imports to curb the inflow of cheap imports from China. I did it. Meanwhile, Nifty also fell 1 per cent in Banking, Auto, Financial Services, IT, Pharmaceuticals, PSU Banks, Consumer Durables and Oil & Gas. Among individual stocks, there is Hindustan Aeronautics. (HAL) rose over 2% after the Ministry of Defense (MoD) announced a Rs 13,500-crore contract with the company to procure 12 Su-30MKI fighter jets.
Zomato shares fell 3% after the Rs 803 crore GST demand notice the company received on Thursday. The food delivery company said it plans to appeal the order.
expert opinion
“In the short term, there will be headwinds and tailwinds in the market. The headwind is the resumption of selling by FIIs, who sold stocks for Rs 356 billion yesterday. Given India’s high valuations, FIIs are likely to sell more whenever the market rises. The sell-off has been beneficial for FIIs as the dollar has risen since the US elections and the tailwind that could support the market is lower inflation,” said Dr. VK. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The dollar rise is a concern as it may lead to import inflation. Nifty is unlikely to move out of the 24,500-24,850 range. Buying will be seen at the lower end of the band and selling will resume at the upper end of the band,” Vijayakumar added.
“Nifty may find support at 24,400, 24,300 and 24,200 after a negative opening. On the higher side, 24,700 could be immediate resistance followed by 24,850, 24,950,” said Hardik Matalia, derivatives analyst at Choice Broking. “He said.
More to come…
