Indian equity benchmarks Sensex and Nifty opened on a flat note on Tuesday, tracking a mixed trend in global markets and sustained foreign fund outflow.
Asia stocks dipped as a more infectious Covid-19 strain fuel concern about derailing the economic recovery
Indian equity benchmarks Sensex and Nifty opened on a flat note on Tuesday, tracking a mixed trend in global markets and sustained foreign fund outflow.
The 30-share BSE index was trading 22.82 points or 0.04 per cent higher at 52,758.41 in initial deals. Similarly, the broader NSE Nifty inched 7.45 points or 0.05 per cent up to 15,822.15.
Asian Paints was the top gainer in the Sensex pack, rising over 1 per cent, followed by PowerGrid, L&T, TCS, Reliance Industries, HCL Tech and ITC.
On the other hand, ICICI Bank, M&M, HDFC Bank, Kotak Bank, and Infosys were among the laggards.
In the previous session, the 30-share index Sensex ended 189.45 points or 0.36 per cent lower at 52,735.59, while Nifty settled 45.65 points or 0.29 per cent down at 15,814.70.
Foreign institutional investors (FIIs) offloaded shares worth Rs 1,658.72 crore on Monday, as per provisional exchange data.
According to Binod Modi Head-Strategy at Reliance Securities, domestic equities look to be flat as of now.
The slew of measures taken by the Finance Minister on Monday to spur economic activities augurs well, he said, adding that the increase in allocation for Emergency Credit Line Guarantee Scheme from Rs 3 trillion to Rs 4.5 trillion, is a fantastic move to support the pandemic-hit sectors and ensure liquidity, which also offers comfort to banks.
A sharp fall in daily caseload and satisfactory ramp up in the vaccination process has overshadowed concerns emerging from higher crude prices and weakening rupee, he said.
India recorded below 40,000 fresh cases in a single day, which brings the nation’s infection tally to 3,03,16,897. The daily fatalities remained below 1,000 for the second consecutive day.
As per V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the strongest headwind for the market now is the continuous FII selling which is logical in the context of the high valuations.
"With strong DII buying (worth Rs 1,277.08 crore on Monday) and over-confident retail activity, FIIs are now in a position to sell aggressively without pulling the markets down significantly."
On the global front, US stocks ended higher with S&P 500 and Nasdaq recording fresh highs.
Asia stocks dipped as a more infectious Covid-19 strain fuel concern about derailing economic recovery. Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with losses in mid-session deals.
Meanwhile, international oil benchmark Brent crude was trading 0.55 per cent lower at $73.73 per barrel.