Benchmark stock market indices opened flat on Tuesday as global cues and consequent weak openings led to profit bookings.
The S&P BSE Sensex added 10.01 points to 81,795.57, while the NSE Nifty50 gained 6.05 points to 25,058.40 as of 9:35 AM.
Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that weak global cues and the consequent weak openings have proved to be opportunities to buy in the domestic market.
Leading the gainers was Bajaj Finserv with an increase of 1.93%. Bajaj Finance followed with a rise of 0.94%, while Bajaj Auto climbed 0.81%. Shriram Finance and Wipro rounded out the top gainers, both advancing 0.79%.
On the downside, Hindalco experienced the largest decline, dropping 1.09%. UltraTech Cement followed with a fall of 0.88%, while Dr. Reddy’s Laboratories slipped 0.82%. Grasim Industries and LTIMindtree also faced losses, declining by 0.76% and 0.72% respectively.
“This pattern may persist. A significant feature of the near-term market trend is that it is resilient and steadily moving up without sharp spurts thereby preventing a spike in valuations in the largecap category. The recent accumulation of IT stocks stems from the confidence that the soft landing scenario in the US economy will lead to execution of the orders on which the IT companies have been sitting for some time now,” he said.
He further added that SEBI’s advisory to investors to be vigilant in investment in SME stocks is timely. Investors should heed the warning from the regulator that many SMEs are “projecting an unrealistic picture of their operations.