New Delhi [India], March 12 (ANI): Indian stock indices opened Tuesday’s trade substantially higher, with sectoral indices in banking and IT leading the pack.
The inflation data–both for retail and wholesale–set to be released this week will be on investors’ radar for fresh cues. Retail inflation data will be released later in the day today.
Retail inflation in India eased in January to 5.10 per cent on an annual basis compared to a four-month high of 5.69 per cent in December. The retail inflation in India though is in RBI’s 2-6 per cent comfort level but is above the ideal 4 per cent scenario.
At 9.40 am, Sensex was at 73,875.52 points, up 372.88 points or 0.51 per cent, and Nifty was at 22,418.10 points, up 85.45 points or 0.38 per cent. Among the widely tracked Nifty 50 stocks, TCS, HDFC Bank, Axis Bank, Reliance Industries, and ICICI Bank were the top 5 movers, while ITC, Nestle India, Cipla, JSW Steel, and NTPC were the top 5 laggards, NSE data showed.
The indices continue to hover near the all-time highs they touched late last week. The indices had been firm tracking firmness in most sectoral indices coupled with overall stable macroeconomic parameters.
Sensex last Wednesday crossed the 74,000 mark for the first time.
Foreign portfolio investors who had aggressively sold Indian stocks and turned net sellers in the Indian equity market in January 2024 became net buyers in February and March. This has also likely buoyed the stocks of late.
So far in March, they bought stocks in India worth Rs 22,412 crore, the latest data from the National Securities Depository Limited (NSDL) showed.
“The dominant near-term trend in the market now is the correction in the broader market, particularly the small caps. The small cap index is 7.8 per cent down from the peak and this correction is likely to continue since the valuations are even now excessive,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“The regulator SEBI has sent a clear message about the frothy valuations in the small cap segment and, therefore, regulatory actions are likely, going forward. There can be redemptions from small cap funds adding to the downside. Quality large caps will bounce back after a correction, but small caps are unlikely to bounce back in the near-term. PSE stocks that have run up too much too fast also are likely to face selling pressure,” Vijayakumar added. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.