Sensex wins 110 points: the key factors driving the market

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NEW DELHI: National benchmarks traded with gains early Monday as weakness in global indices weighed on investor morale. However, the expectation of better earnings for the September quarter kept buying intact in most counters.

The resilience of the market in general, and the dynamics of the broader market in particular, can only be explained by one factor: the exuberance and dominance of novice retail investors, one analyst said.

“The weakness of IT and the strength of the banking sector that manifested itself yesterday must not become a trend. The results of Infosys, Wipro and HCL Tech should not disappoint the market like TCS. The INR at 75.35 per dollar is becoming a major tailwind for IT. So investors need to stay invested and even buy when it goes down, ”said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

How are the bluechips
After an opening in the red, benchmarks rallied. At 9:25 am, BSE flagship Sensex was up 110 points or 0.18 percent to 60,245. The benchmark NSE Nifty was up 41 points or 0.23 percent to 17,987.

“The weakening rupee and inflationary pressure add to the woes of traders. Equity-specific actions could be considered as the quarterly earnings season begins to gain momentum, ”said Sageraj Bariya, vice president of institutional sales, East India Securities.

In the 50 Nifty stock pack, Tata Motors was the biggest winner, up 2.96%. Bajaj Auto, Hindalco, Eicher Motors, JSW Steel, SBI, Tata Steel and Hero MotoCorp were among the other winners.

HCL Tech was the big loser of the pack, down 2.15%. M&M, Infosys, Tech Mahindra, Indian Oil, ONGC, Shree Cement, NTPC and Coal India were among those that traded in the red.

FACTORS THAT DRIVE MARKETS

Yields, rising dollar: The yield on the benchmark 10-year rate reached 1.6136% after rising sharply on Monday. The two-year yield rose to 0.3517 percent, from a US close of 0.318 percent. The dollar index, which tracks the greenback against a basket of currencies from other major trading partners, was up at 94.423.

Evergrande crisis: Reuters reported that some of China Evergrande Group’s offshore bondholders did not receive interest by Monday’s deadline. Rivals Modern Land and Sinic have become the latest developers scrambling to delay bond payment deadlines.

Crude oil: Oil prices rose on Friday, heading for a 4.2% gain for the week on signs that some industries have started to switch from high-priced gas to oil and on doubts the U.S. government would release oil from oil. its strategic reserves.

Wider markets
The broader market indices traded mixed, in line with their major peers in morning trading. Nifty Smallcap rose 0.11% while Nifty Midcap fell 0.17%. The largest index on NSE, Nifty 500, rose 0.04%.

Delta Corp, Ujjivan SFB, Radico Khaitan, Indian Hotel, Castrol India and APL gained ground while Adani Total Gas, Oberoi Realty, Torrent Power, Chambal Fertilisers, Firstsource Solutions and Vakrangee were under selling pressure.

Global markets
The MSCI’s largest Asia-Pacific stock index outside of Japan fell 0.9% at the start of trading, after US stocks ended the previous session with small losses. US equity futures, the S&P 500 e-minis, fell 0.43%.

Australian stocks slipped 0.29% while the Japanese Nikkei stock index slipped 1.03%. China’s blue-chip CSI300 index was down 0.75%, while Hong Kong’s Hang Seng index opened down 1.35%.

Things to watch out for:

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