Sensex Opens in Green Above 60,600: A Detailed Analysis
Key Highlights :
After four days of a strong rally, equity benchmark indices in India declined in the morning trade on Friday, as investors chose to stay on the sidelines. The 30-share BSE Sensex opened at 60,575.59, down 73.79 points, while the broader NSE Nifty opened at 17,897.20, down 17.85 points.
From the Sensex companies, Bajaj Finserv, Asian Paints, Hindustan Unilever, Axis Bank, IndusInd Bank, Power Grid, Bajaj Finance and Kotak Mahindra Bank were the major laggards. On the other hand, Wipro, Tech Mahindra, Tata Consultancy Services, Sun Pharma and Reliance Industries were the gainers.
In Asian markets, Seoul traded lower, while Japan, Shanghai and Hong Kong traded in the green. The US markets had ended with significant gains on Thursday.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said in his pre-market opening quote that, “Markets may see a volatile opening as SGX Nifty has been witnessing sharp gyration even as key US indices bounced back sharply from the recent slump to end sharply higher in overnight trades. Going by the recent uptrend, there are chances that the Nifty could recapture the psychological 18,000-mark.”
He further said that with the global macroeconomic scenario still looking extremely bleak and local markets having run sharply in recent sessions, profit-taking could be on the cards going ahead.
On Thursday, the BSE benchmark had closed 348.80 points or 0.58 per cent higher at 60,649.38. The Nifty had advanced 101.45 points or 0.57 per cent to end at 17,915.05.
Global oil benchmark Brent crude climbed 0.41 per cent to USD 78.69 per barrel. Foreign Institutional Investors (FIIs) were buyers on Thursday, as they bought equities worth ₹ 1,652.95 crore, according to exchange data.
Overall, the markets opened in the green above 60,600 on Friday, with the Nifty at 17,929. However, the investors are still cautious due to the uncertain global economic scenario and are likely to remain so in the near future.
It will be interesting to see how the markets perform in the coming days, and whether the Sensex will be able to sustain the momentum gained in the last few days.
