Sensex, Nifty start on cautious note as Fed mins signal further tightening

Tracking weak cues from global markets after the release of the US Fed minutes, domestic benchmark equity indices Sensex and Nifty opened on a flat note on Thursday but buying was visible in mid and smallcaps.

Among Nifty stocks, Britannia, SBI Life and Power Grid were the top gainers rising 1-2% each while Eicher Motors lost another 2%.

Within the sectoral indices, Nifty Media and Nifty Realty were the top gainers rising around 1% each.

In the broader market, DCB Bank rallied 8% to the day’s high of Rs 131.15 after RBI approved Tata AMC to hike stake in the private sector lender.

Expert Take

Analysts say that although the macroeconomic scenario is good, it is not so bullish as to warrant continuation of the rally, which has already run a bit ahead of fundamentals. “Investors should not chase low-grade smallcap stocks at this juncture. Stay invested in high-quality largecaps. Wait for the Q1 results for direction,” said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“Nifty’s support is seen at 19,300, below which weakness could emerge. The level of 19,450 could continue to offer resistance in the short term for Nifty which could end in the negative on the eighth day of rise,” said Deepak Jasani of HDFC Securities.