Sensex, Nifty open flat; PSBs rally on privatisation news

While the 6.4% correction from the peak in Nifty has made the market healthy, the valuations continue to be high.

  • Money9
  • Publish Date - November 24, 2021 / 10:11 AM IST
Sensex, Nifty open flat; PSBs rally on privatisation news
Sensex, Nifty open higher on Wednesday on positive global cues.

Domestic benchmark equity indices opened flat with a positive bias despite Treasury yields held a climb and traders weighed the prospect of tighter monetary policy to curb inflation. In opening trades, Sensex rose 46 points or 0.08% to 58,710 whereas the Nifty was quoting at 17,532 advancing by 29 points or 0.17%.

“While the 6.4% correction from the peak in Nifty has made the market healthy, the valuations continue to be high. Therefore, FIIs may continue to sell on every rise in the market. The market is likely to consolidate with sideways movements in the short run,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Meanwhile, global markets continue to remain stable inspite of a resurgence in Covid cases in parts of Europe. An interesting development in the energy space is the crude market completely ignoring the decision of large energy users like US, China, Japan and India to release crude from their strategic reserves. The market is signalling firm oil prices. This is not good news from the inflation perspective and central banks will have a tough time managing growth stimulus and inflation control, Vijayakumar added.

Top gainers & losers

Top gainers & losers on the Sensex.

Sectoral strand

Nifty PSU Bank leads the sectoral pack with gains of 1.24% on news of privatisation of public sector banks. While Nifty Bank, Nifty Auto, Nifty FMCG, Nifty IT and Nifty Realty indices gained in the range of 0.05-0.40%.

On the downside, the Nifty Metal index slipped 0.60%. While the fear gauge index India VIX cooled off by 11.07% to 16.02 levels.

Broader markets

The broader market outperformed benchmark indices as the BSE MidCap index was up 67 points or 0.26% to 25,713 whereas the BSE SmallCap index was trading at 28,639 higher by 188 points or 0.66%.

The market breadth favoured the bulls as 1,868 shares advanced while 461 declined and 83 remained unchanged.

Global markets

Overseas, Asian stocks are trading mixed on Wednesday as investors monitor moves in U.S. Treasury yields.

Singapore’s economy grew 7.1% in the third quarter as compared with a year ago, according to the Ministry of Trade and Industry. It was higher than an earlier official advance estimate for 6.5% year-on-year growth.

The Nasdaq Composite fell for the second consecutive day as higher interest rates appeared to put pressure on high-flying tech stocks.

U.S. markets will be closed for the Thanksgiving holiday on Thursday. The stock market closes early on Friday.

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