Opening bell: Nifty, Sensex open flat; Automatic top winner, most affected energy stocks
After a weak close on Wednesday, the Indian market opened in the green with marginal gains on Thursday. Benchmarks Nifty50 and Sensex opened near their previous closes, with the former opening at 15,451.55 and the latter at 51,972.75 on Thursday.
Following the benchmarks, Nifty midcap and smallcap edged up 0.10% and 0.2% respectively
On the sector front, Nifty Oil & Gas, Consumer Durables, Realty, PSU Bank and Metal declined, while all other indices opened with minor gains.
In the pre-open, around 9:05 a.m., the Sensex traded 150 points higher as 27 stocks rose, two fell and one remained neutral on the 30-stock index.
“With each passing day, the likelihood of the U.S. economy falling into recession increases. rate hike,” said VK Vijayakumar, chief investment officer. Strategist at Geojit Financial Services.
Such a scenario will only emerge if there is a sharp drop in crude prices, the expert pointed out.
Since the Nifty clearly broke the lower 15800-16800 band it had been trading in for some time, the market structure has turned weak, Vijayakumar said.
He said the relentless selling of REITs and the expectation of further selling has created a trade setup in which every rally will be sold.
“The only sensible investment strategy in these complex and uncertain times is to buy high-quality stocks that are falling and wait patiently. Outside of financials, which look good, IT is benefiting from the depreciation of the rupee and some automobiles, gaining due to falling metal prices, are good buys for a long-term investment,” the expert advised.
Earlier signals from Asian markets remained mixed on Thursday.
SGX Nifty, which indicates opening trends for the Indian market, was trading flat with a positive bias, with the futures index gaining around 20 points in the morning trading in Singapore on Thursday.
In addition, the Japanese Nikkie also traded flat, while the Hang Seng Index on the Hong Kong Stock Exchange gained 0.6% and China’s Shanghai Composite traded up 0.3% in beginning of Thursday.
Earlier, in the US market, all major indices closed in the red. The Dow Jones fell 0.12%, the Nasdaq closed with declines of 0.15% and the S&P 500 fell 0.13% on Wednesday.