Sensex, Nifty trades flat on global cues2 min read . Updated: 27 Sep 2019, 09:46 AM IST
- Shares of Tata Motors lost 2.29% during the early trade
- BSE Midcap and Smallcap indices rose 0.07% and 0.21% respectively
New Delhi: Tracking global indices, the equity benchmark indices on Friday opened negative but both Sensex and Nifty pared opening gains.
At 9:15 am, Sensex was at 39,071.11 up 81.37 points, or 0.21%, while the broader Nifty opened 16.75 points, or 0.14%, lower at 11,587.95.
Among sectors, except for Nifty FMCG (0.01%) and IT (0.39%), all the nine sub-sectoral indices opened negative. Nifty Private Bank (-0.94%), Bank (-0.80%), Metal (-0.78%), Realty (-0.71%) and Pharma (-0.69%) were the top losing sectors during the early trade.
Yes Bank, Tata Motors, ONGC, Asian Paints and Vedanta were the biggest laggards on Sensex pack, falling as much as 3.72%.
However, the broader market was in a good mood as both the BSE Midcap and Smallcap indices rose 0.07% and 0.21% respectively.
“Nifty started September month around 10,800 level and was struggling to cross the 11,000 resistance as the initial stimulus from FM could not help improving investor’s sentiments. Country’s economic growth of 5% (lowest in last 6 years) combined with global cues further hit the sentiments and NIFTY gave up all the gains for the year 2019. However, the latest stimulus of slashing the corporate tax was perceived well across the market and the Indian equity benchmarks clocked their biggest intraday move almost in a decade, market recovered ~7-8% in just 6 sessions," said Rahul Mishra, AVP (Derivatives), Emkay Global Financial Services.
"With the revised tax rate India has become one of the lowest tax rate region in Asia. Nifty is currently trading above 50 and 200 DMA and we believe 11300 will be the support level, 11600 will be good resistance and we may see supply around this level. From derivative point of view, FIIs have doubled their position in Index future during the month so far. The monthly option data suggest that the Nifty range for the month of October will be 11000-11500, however, 12000 call holds a decent open interest making it the next resistance," added Mishra.
Yes Bank was the top loser after it said co-founder Rana Kapoor’s family business Yes Capital (India) Pvt. Ltd sold 1.82% promoter group stake for ₹241.52 crore. The identity of the buyer is not known.
Tata Motors shares lost 2.29% after Jaguar Land Rover said it will halt production at its British factories for a week in November, joining BMW and Toyota in plans to help mitigate any immediate disruption from a no-deal Brexit.