The S&P BSE Sensex started September series on a positive note on Friday led by gains in Tata Motors, RIL, ICICI Bank, ITC and HDFC.
The Nifty50 reclaimed its crucial level of 8,600 supported by gains in oil & gas, power, realty, metal, consumer durables, and auto stocks.
The domestic equity indices remained sideways, tracking poor closing of US markets in overnight trade ahead of Fed Chair Janet Yellen’s speech at Jackson Hole later in the day.
On Thursday, Kansas City Fed President Esther George said it was time for the central bank to raise rates gradually. Adding fuel to the fire, Dallas Fed President Robert Kaplan was seen suggesting that the Fed should be able to hike interest rates in the not too distant future, media reports said.
At 09:20 am, the 30-share index was trading 66 points higher or 0.24 per cent at 27,902.80. It touched a high of 27,920.90 and a low of 27,880.48 in morning trade.
The Nifty50 was trading at 8,617 up 22 points or 0.25 per cent. It touched a high of 8,618.35 and a low of 8,606.55 in the first 30 minutes of trade.
The S&P BSE Midcap Index was up 0.37 per cent and BSE S&P Smallcap Index was trading 0.38 per cent higher.
Tata Motors (up 1.8 per cent), Lupin (up 0.93 per cent), RIL (up 0.76 per cent), Gail India (up 0.75 per cent), and Tata Steel (up 0.70 per cent) were the major Sensex gainers.
Coal India (down 0.6 per cent), SBI (down 0.50 per cent), Asia Paints (down 0.57 per cent) and HDFC (down 0.20 per cent) were the major Sensex losers.
Here are a couple of factors which are influencing the market sentiment today.
Market-wide rollovers at 81%: Data from the bourses showed marketwide rollovers to the September F&O series stood at 81 per cent, compared with an average rollover of 78 per cent in the past three series. On the other hand, rollover of Nifty futures stood at 84 per cent, which were higher than the average of 71 per cent seen in the past three series.
“The Nifty movement will be highly influenced by global cues with several key events lined up such as policy reviews by Bank of Japan, US Fed and the ECB. Comments from the US Federal Reserve will be awaited the most as they will throw up cues on the future rate trajectory. Moreover, the newly-appointed RBI governor would take over the reins on Mint Street next week,” Edelweiss Securities said in a note.
Nifty50 to face resistance at 8,700: A fall below the 8,550 level can drag the index towards the 8,400 level, experts said.
“It is really difficult to say which side the market will go over the next 15 sessions, because the Nifty50 is still trading in a range between 8,700 and 8,550 levels. One should watch out for a breakout on either side. If it breaks the 8,700 level, you can take a long call for the target of around 8,920. But if it breaks 8,550, then possibly ..
you can see a correction of almost 150-200 points. In that case, Nifty50 can again test the 8,400 level,” said Manas Jaiswal from manasjaiswal.com.
Asian markets stay mixed: Japan’s benchmark Nikkei was trading 0.87 per cent lower at 16,411 on Friday morning. China’s Shanghai Composite rose 0.30 per cent to 3,077. Other Asian indices, including Hong Kong’s Hang Seng (up 0.71per cent), South Korea’s Kospi (down 0.30 per cent) and Taiwan’s TWSE (down 0.07 per cent), were trading mixed.
FPI flow to influence sentiment: Data available with NSDL showed foreign portfolio investors (FPIs) have bought equities worth Rs 8,159 crore so far this month.
“We may not really expect anything sensational from the statement to be made by US Fed Chair Janet Yellen. It could be more of a standardised kind of announcement that the Federal Reserve will be open to providing liquidity, increasing rates in case inflation does move upwards,” said Madan Sabnavis, Chief Economist, CARE Ratings
US markets fell on Thursday: The Dow Jones Industrial Average fell 37.46 points, or 0.2 per cent, to 18,444, the S&P 500 lost 3.34 points, or 0.15 per cent to 2,172.1 and the Nasdaq Composite dropped 5.93 points, or 0.11 per cent to 5,211.76, Reuters reported.