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Equity benchmark indices started Friday’s trading session on a tentative note amid weak cues from global peers.
The S&P BSE Sensex opened in red at 75,335, and soon dipped to a low of 75,244. The BSE index, thereafter, recovered and bounced back into the positive zone. The Sensex was up 120 points at 75,530 levels.
The NSE Nifty 50 was quoting around 22,990 – up 20 points.
Tata Steel, Larsen & Toubro and SBI were the top movers among the Sensex 30 stocks, while Mahindra & Mahindra and Sun Pharma were the chief laggards.
In the broader market, the BSE MidCap and SmallCap indices also held gains, up 0.1 per cent and 0.3 per cent, respectively.
The 1196 point rally in the Sensex yesterday was triggered mainly by the sudden shift in FII trade from sustained sellers to big buyers resulting in buying of Rs 4671 crores. What makes this rally healthy is the fact that it is being led by fairly valued largecaps with the overvalued broader market taking a backseat. The trend of outperformance of largecaps is likely to continue.
Global Cues
On Thursday, US markets closed in the red as robust economic data dashed hopes for Federal Reserve rate cuts. Both services and manufacturing data for May surpassed forecasts, while initial jobless claims for the week ending May 18 stood at 215,000.
The Dow Jones recorded its worst session since March last year, settling 1.53 per cent lower. Similarly, the S&P 500 declined 0.74 per cent, and the Nasdaq ended 0.39 per cent lower, despite Nvidia’s strong guidance and earnings beat.
Near home in Asia, Nikkei, Hang Seng and Kospi were down over 1 per cent each. Shanghai and Taiwan traded on a flat note.