Sensex rises 30 points as the Nifty crosses 17,400 amid subdued global cues

The Indian market opened Monday flat, following the Asian markets, which were trading flat to down.


The Indian market opened Monday flat, following the Asian markets, which were trading flat to down. Prior to Tuesday’s stock market vacation, the broader Nifty 50 opened above 17,400, while the Sensex increased by about 30 points. Due to the Muharram Holiday, the stock exchanges (NSE and BSE) will be closed on August 9, 2022. Opening prices for the benchmarks were 17,401.50 and 58,417.71, respectively.

Following barometer indexes, the Nifty Midcap and Smallcap indices in the broader market opened flat with slight increases or decreases.

On a sectoral level, Nifty PSU Bank fell by more than 1%, while Consumer Durables saw the biggest increase, rising by 0.8 % in Monday’s opening trade.

Earlier, at the pre-open, 19 stocks on the 30-share index rose while 11 fell, resulting in a 10 point gain for the Sensex, which was trading flat.

“A paradox in the economy-market connect is that good news on the economy can turn out to be bad news for markets. This is playing out now. The July US jobs data came in at a robust 580000 against the poll of 250000. This indicates a strong economy nowhere near recession,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, on the current market trends.

He noted that this indicates the Fed may raise rates by an additional 75 basis points in September in order to slow the economy and control inflation.

As a result, the dollar might rise in the near future. The expert said it is yet unclear how FIIs will respond to this.

India has tremendous growth impulses, according to Vijaykumar. He noted that leading signs such as the expansion of bank credit, manufacturing capacity utilisation, vehicle demand, etc. point to a robust economic recovery.

“Construction, capital goods, and the financial sector are all doing well. FMCG and pharma are stable. Strong employment numbers in the US is encouraging for the IT industry ” he added.

Earlier on Monday morning, the Singaporean exchange’s SGX Nifty, which predicts the opening trend of the Indian market, was trading lower by about 50 points.

The Hang Seng Index at the Hong Kong Exchange dipped close to 0.8 percent, the Chinese Shanghai Composite was seen trading flat on Monday morning, and the Japanese Nikkei 225 also had a slight 0.10 percent decline.

The US stock market had a mixed day on Friday. The US benchmark Dow Jones index rose 76 points on Friday, but the Nasdaq lost 63 points and the S&P 500 finished 6.75 points worse.