Sensex, Nifty trade flat in early deals on mixed cues
Mumbai, Aug 10
Domestic equity markets traded subdued on Monday amid resilient domestic demand and continued foreign investor buying, while crude oil prices surged up to 1 per cent offering mixed cues for investors.
Sensex climbed 177.81 points or 0.22 per cent to hit an intraday high of 78,676 in early trade. Similarly, Nifty advanced around 50 points or 0.2 per cent to 24,620.
Among sectoral indices, Nifty Pharma gained 0.72 per cent, followed by Nifty MidSmall Healthcare at 0.63 per cent and Nifty500 Healthcare at 0.63 per cent.
Meanwhile, Nifty MidSmall IT & Telecom rose 0.58 per cent, while Nifty IT gained 0.53 per cent, while private banking, auto, consumer durables and realty shares also traded higher.
On the other hand, Nifty Oil & Gas was the biggest laggard and declined by 0.27 per cent, followed by PSU Bank, down 0.21 per cent.
Market experts said the undertone remained mildly bullish, citing better-than-expected first-quarter earnings and resilient domestic demand.
With the earnings season nearing its end, most companies have reported earnings growth that has exceeded expectations, they said.
Experts said domestic demand could continue supporting revenue and earnings growth in the second quarter, adding that banking and financial services, automobiles, pharmaceuticals, metals and digital platform companies are expected to remain relatively resilient despite headwinds, including deficient monsoon rains.
The monsoon shortfall has been partly offset by improved rainfall in July, they said.
Foreign institutional investors turning net buyers in July and continuing to buy on most trading days in August so far is another supportive factor for the market, the experts said.
In the commodity market, international oil benchmark Brent crude was trading more than 1 per cent higher at $84.73 a barrel. US West Texas Intermediate crude gained 1.59 per cent to $79.43 a barrel.
— IANS
Reader Comments
Pharma and IT doing well is a relief for retail investors 👍. My mutual fund SIPs are finally showing some green. But oil prices going up again is scary for our import bill.
Honestly, the 0.2% gain is nothing. It's just noise. The real story is that corporate earnings have held up despite all the global headwinds. That's the only reason I'm not panicking about my portfolio.
Crude at $84+ is a concern for sure, but the fact that FIIs are back is a positive signal. Let's hope the govt keeps policy stable post-elections. Also, healthcare and pharma rallying makes sense given the season.
Bank nifty and autos doing well, but PSU banks lagging again! 🏦 When will they catch up? Anyway, I'm staying invested for the long term. This is not the time to be greedy or fearful, just disciplined.
I wish the media wouldn't make such a big deal of daily fluctuations. Sensex up 177 points then flat? That's just a normal Tuesday (or Monday!). For retail investors, focus on your asset allocation. 📈
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