Stock Market Update: BSE Sensex Opens Lower; Nifty50 Close to 22,900
The benchmark Indian equity indices BSE Sensex, and Nifty50 opened Tuesday in the red. Nifty50 opened near 22,900 while BSE Sensex remained below 75,900.
Stock Market Update: BSE Sensex Opens Lower; Nifty50 Close to 22,900
Stock Market Today: BSE Sensex traded at 75,880.81 at 9:23 am, down 116 points, or 0.15%. The Nifty50 index was trading at 22,899.15. This is a decline of 60 points, or 0.26%.
Indian equities made a remarkable turnaround on Monday, despite an initial weak performance. HDFC Bank led the recovery, with Reliance Industries and Bajaj Finance following closely behind.
Rupak De (Senior Technical Analyst, LKP Securities) commented on the performance of the global market, noting that while the Nifty recovered significantly from its daily bottom due to the buying at lower levels the overall sentiment remained subdued. He noted that the index did not surpass the Fibonacci level.
The index will likely remain a short-term sell-on rise candidate until it crosses decisively above 23,150 in a closing basis or on a sustained basis. Support is at 22,800 on the downside," De said.
Dr. V K Vijayakumar said: "The market's weakness persists, despite yesterday's mild recovery. The market structure does not favour a market rally. FIIs will likely continue to sell. The news flow is not positive. The US market is still strong and could attract capital from other markets. The Chinese authorities have announced a new development that indicates a different perspective on the Chinese government's relationship with Chinese businesses. President Xi stated that a "clean relationship between government and businesses" is needed.
This is seen as a positive development in terms of reviving China's economy, which is currently struggling due to the aftermath of the real estate crisis. If the new initiatives of the Chinese government are met with positive reactions from FIIs then this is bad news for Indian markets.
The Hang Seng exchange will see more money flowing into Chinese stocks, since the Hang Seng PE is only 12 as opposed to 18.5 for a one-year future PE in India. In India, largecaps are fairly priced and can be bought with a calibrated approach. The market structure doesn't encourage aggressive buying."
