Sensex Rises 120 Points, Nifty Above 24,400; Tech Mahindra Down 4%
Indian bourses opened on a positive note on Friday, with BSE Sensex adding 119 points to 80,158, while the Nifty50 index rose marginally by 17 points to 24,423 levels.
On BSE Sensex Tech Mahindra led the losses, down 53, followed by IndusInd Bank, Maruti and L&T among others, while Bharti Airtel rose by 2 per cent, followed by TCS, Tata Steel, Infosys and Kotak Bank among others.
Market View – Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
The unique feature of the ongoing bull market in India is its ability to climb all walls of worry. The market dismissed all concerns relating to elections, the Budget and the correction in the mother market US. The buy on dips strategy which has played out well in this rally continues to hold good. However, the valuation discrepancy – largecaps fairly valued and mid and small caps highly valued – continues. Long-term investors should exploit this discrepancy by buying quality largecaps on declines. FPIs have again turned sellers and this might put further pressure on largecaps even though the FPI selling is being matched by DII buying.The US Q2 GDP numbers coming better than expected at 2.8% further reinforces the soft landing hope for the US economy.
Global Cues
A steady trade in Asia is expected to lend support. Australia’s ASX200, and South Korea’s Kospi indices were quoting 0.87 per cent higher each this morning.
Further, Hong Kong’s Hang Seng added 1.14 per cent, and Japan’s Nikkei gained 0.19 per cent in Friday’s morning trade.
Overnight, the S&P 500 declined 0.51 per cent on Wall Street, while the Nasdaq dropped 0.93 per cent to. The Russell 2000, on the other hand, gained 1.26 per cent as investors continued their rotation from tech stock into small caps.
The Dow Jones Industrial Average outperformed the major averages, rising 0.2 per cent, amid higher-than-expected growth in the second-quarter GDP. Data showed the US economy grew 2.8 per cent in the said quarter.