Big bang opening!

Taking advantage of the positive global cues and the relatively attractive valuations on the back of the steep correction witnessed over the last couple of trading sessions, markets have opened on a strong footing today. Investors are lapping up stocks from across sectors with the index heavyweights also witnessing significant strength.

The BSE Sensex is trading at 6,261 (up 104 points) and the Nifty is trading at 1,957 (up 29 points). The rupee is trading at Rs 43.75 per US Dollar.

Breaking off from the bear carnage witnessed over the last couple of days, which saw the indices lose nearly 5% in mere two trading sessions, they have opened on a very firm footing today with gains of over 1.5%. The extent of the buying strength can also be gauged from the fact that barring Bajaj Auto (BJAT.BO, news) and Glaxo (both down only marginally), all the other stocks are witnessing buying interest. Further, considering both the BSE and the NSE combined, currently, for every 1 declining share, there are 7 advancing shares. It must be noted that the meltdown over the last couple of trading sessions was largely in line with the global markets, which too had witnessed a strong bout of selling on the back of concerns of slowing global economic growth. However, with most of the Asian markets trading strong today, the Indian bourses have followed the trend.

Amidst significant volatility, the US indices ended on a mixed note yesterday. While the Dow closed marginally lower, the Nasdaq and S&P 500 managed a marginally positive close. Trying to overcome from last week's sell-off, the US indices opened on a firm note. But lack of follow buying kept the indices under pressure. Further, for the Dow, higher-than-expected earnings but below-than-expected sales growth saw the stock tank in yesterday's trade. 3M being a Dow component, the weakness was visible on the index. Going forward, US markets keenly await the inflation readings due to be released soon as any significant strength in this could send US stocks into a dizzy as fears of rising interest rates will once again take over investor sentiments. However, we believe, largely it will be the earnings numbers that will take control over matters on the US bourses in the near-term.

Email this article to your friend -  View most popular