Synopsis
The benchmark S&P BSE Sensex opened 47.34 points or 0.06% lower at 81,661.78, while the broader Nifty 50 index opened at 24,669.75, lower by 8.05 points or 0.03%. ETMarkets.com The Indian bourses opened flat on Monday, after marking their best week since June on Friday, with investors expected to trade cautiously ahead of the U.S. and domestic inflation readings this week.
The benchmark S&P BSE Sensex opened 47.34 points or 0.06% lower at 81,661.78, while the broader Nifty 50 index opened at 24,669.75, lower by 8.05 points or 0.03%.
Shares of state-owned State Bank of India and index heavyweight Larsen and Toubro (L&T) are leading the gains on the broader Nifty index, climbing over 1% each.
Investors are now focused on U.S. consumer price inflation (CPI) data, which is due on Wednesday and will influence the future interest rate trajectory and foreign inflows into emerging markets such as India.
India’s CPI data, due on Thursday, would be a crucial factor influencing RBI’s rate cut timing.
The ongoing market rally can take the Nifty Bank to new record highs, lifting the Nifty further up, said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, adding that “however, the sustainability of the rally is doubtful since the slowing Indian economy will constrain the bulls, and the FIIs may again turn sellers since there is no valuation comfort in the market.”
“The near-term trend of the market is mildly bullish… The momentum in the US market is robust and in such a scenario the bulls cannot be overly optimistic. Rate cut by the Fed this month is now a foregone conclusion and this will keep the equity markets positive. The medium to long-term trend of the market is uncertain,” said Vijayakumar.
Asian shares struggled on Monday, with a 1.4% slide in South Korea shares even as authorities pledged all-out efforts to stabilise financial markets amid uncertainty over the fate of President Yoon Suk Yeol.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2% and Japan’s Nikkei firmed 0.3%, helped by an upward revision to economic growth, while Chinese blue chips wavered either side of flat.
Read More