IGI Logo

Below is the Indian markets opened positive and after remaining lacklustre in the initial half by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Indian equities opened positive but remained consolidative throughout the session, to finally end with negative bias. Investors were cautious as focus has shifted to the U.S. Federal Reserve meeting outcome due later today. The broader market outer performed and made come back with midcap and small cap indices up more than 1%.  Realty index has zoomed 8.6% to hit a new high on expectation of strong demand ahead of festive season, with several lenders already announcing a rate cut. Nifty Media surged 13.6%, following a sharp rally in heavyweight Zee after the media company's board unanimously provided an in-principle approval for the merger between Sony Pictures Networks India and ZEE. Global markets have calmed and now trading with caution in anticipation that the Federal Reserve may move a step closer to tapering but may not start immediately. Worries also eased as China Evergrande Group reached an agreement with one of its bond holders that would allow it to avoid falling into default. However, Crude oil prices rose sharply after the latest API inventory data showed stockpiles still falling sharply in light of two hurricanes that disrupted the energy production and distribution complexes in the Gulf of Mexico.

Going ahead market might continue with its consolidation for sometime led by fragile global cues. Tomorrow investors would react to the US Fed MPC outcome while they would await ECB outcome tomorrow. Expectation of continuation of dovish stance by both central banks are running high. On the domestic front, with active cases falling to 6-month low, and vaccination robust pace continuing along with Government’s proactive policies, sentiments continue to be buoyant with regards to healthy economic recovery. However, given rich valuations, one cannot ignore intermittent volatility and hence traders should navigate cautiously.

Above views are of the author and not of the website kindly read disclaimer