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The BSE Sensex was trading 406 points higher at 73,909. Nifty50 was trading at 22,412, up 80 points at around 9.50 am.
The CPI is expected to have risen 0.4% in February on a monthly basis, and could heavily influence the timing of the Federal Reserve’s rate cuts.
While traders have ruled out a rate cut in the Fed’s upcoming policy meeting on March 20, they see a 55.2% probability of a 25 basis points cut in June, according to CME’s FedWatch Tool.
From the Sensex stocks, TCS, Infosys, Tech Mahindra, and HCL Tech opened higher, while ITC, SBI, NTPC, Bajaj Finance, and Bajaj Finserv opened with cuts.
Aditya Birla Capital shares rose over 6% higher after the company said it will merge with its unit Aditya Birla Finance and turn into an operating non-banking financial company from a holding company.Smallcap firm HIL rose 4% after the company acquired 100% equity of Crestia Polytech and 4 other entities for around Rs 265 crore on a cash-free and debt-free basis.On the sectoral front, Nifty Bank, Auto, Financial Services, IT, and Oil Gas surged, while FMCG, Media, Metal, Pharma, Realty, and Consumer Durables declined. In the broader market, Nifty Midcap100 fell 0.4%, and Nifty Smallcap100 declined 0.8%.
Experts Take
“The dominant near-term trend in the market now is the correction in the broader market, particularly the small caps. The small cap index is 7.8% down from the peak and this correction is likely to continue since the valuations are even now excessive,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“Quality large caps will bounce back after a correction, but small caps are unlikely to bounce back in the near-term.PSE stocks that have run up too much too fast also are likely to face selling pressure,” Vijayakumar said.
Deven Mehata, Research Analyst at Choice Broking, said, “Nifty can find support at 22,250 followed by 22,200 and 22,100. On the higher side, 22,400 can be an immediate resistance, followed by 22,450 and 22,500.”
Global Markets
Asian stocks nudged higher on Tuesday ahead of the influential U.S. inflation report, while Japanese shares fell and the yen firmed on rising expectations that the Bank of Japan may be ready to exit ultra easy-monetary policy as early as next week.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.20% higher, just shy of the seven-month high it touched on Friday. China stocks rose, with Hong Kong’s Hang Seng Index up 0.75% led by tech stocks, while the blue-chip CSI300 index 0.13% higher.
FII/DII Tracker
Both foreign portfolio investors and domestic institutional investors were net buyers of Indian equities on Monday, adding shares worth Rs 4,213 crore and Rs 3,238 crore, respectively.
Oil Rises
Oil prices rose in early Asian trading, but price moves were limited as the market waited for monthly reports from oil agencies. Brent futures for May delivery rose 23 cents to $82.44 a barrel. The U.S. crude April contract rose 17 cents to end at $78.10 a barrel.
Currency Watch
The Indian rupee fell 1 paisa to 82.76 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.04% to 102.82 level.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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