Indian equity indices had a flat opening on Tuesday, influenced by mixed signals from the global market. By 9:40 a.m., the Sensex had slipped by 67 points, or 0.08%, to 81,631, while the Nifty dropped by 35 points, or 0.14%, to 24,975.
Midcap and smallcap stocks are experiencing more buying interest compared to largecap stocks. The Nifty Midcap 100 index has risen to 59,117, gaining 185 points or 0.32%, and the Nifty Smallcap 100 index has climbed to 19,183, up 51 points or 0.27%.
Sector-wise, IT, PSU Bank, pharma, FMCG, media, and PSE are the top performers, whereas Fin Service, auto, metal, and realty are among the sectors facing declines.
The overall market sentiment remains positive. On the National Stock Exchange (NSE), 1,299 shares are advancing, while 654 are in the red.
In the Sensex group, HCL Tech, L&T, Power Grid, Infosys, Nestle, UltraTech Cement, Sun Pharma, ITC, Titan, Bajaj Finserv, and Wipro are leading the gains. Meanwhile, Kotak Mahindra Bank, M&M, HDFC Bank, and IndusInd Bank are among the top decliners.
Asian markets, except for Tokyo, are mostly in the red, with major losses in Shanghai, Hong Kong, Bangkok, Seoul, and Jakarta. The US markets closed with mixed results on Monday.
Market experts note that "There are both headwinds and tailwinds for the market now. Headwinds are coming from the escalation of the geopolitical tensions in the Middle East and Ukraine. Brent crude has shot up above 81 dollars. The strongest tailwind comes from the expected rate cuts by the Fed which will spill over to other central banks, including the RBI."
They further added, "The Indian economy now needs monetary stimulus through rate cuts and this is likely in the next policy meeting."
On August 26, foreign institutional investors (FIIs) continued their buying spree, acquiring equities worth Rs 483 crore, while domestic institutional investors purchased equities worth Rs 1,870 crore on the same day.
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