The Indian markets opened flat on a lack of domestic and global triggers. The markets just about managed to hold on to the bullishness after Tuesday’s lower-than-expected inflation data.
The Sensex opened at 17716.09, down about 12 points, and the Nifty 5376.40, down about 4 points.
The rupee opened down at 56 against the dollar.
The Asian markets had a tepid opening as investors stood on the sidelines, waiting for more clues over the timing and extent of any further stimulus to tackle the eurozone’s debt crisis and support global growth.
US stocks, the dollar and most commodities markets rose on Wednesday while the euro and US Treasury prices fell after data showing US industry output rose 0.6 percent in July.
Inflation declined to 6.87 percent in July, government data showed on Tuesday, as the rate of price rise of the food articles category eased a little. India’s annual exports fell 14.8 percent to $22.4 billion in July, while imports fell 7.79 percent to $37.9 billion, leaving a trade deficit of $15.5 billion.
Brokerage MF Global said on CNBC TV18 that that the market has been witnessing lower volatility for the last few trading sessions and options build-up is suggesting bullishness in the market.
“While the near-term upside remains intact, we feel markets would consolidate for a few more sessions before the next upmove. Stiff resistance for Nifty is at 5415, while strong support is at 5347 Among the sectoral indices, Oil & Gas, Banks & Autos look good & could outperform,” HDFC Securities said in its Morning Note.
The Bank Index has kept the market afloat with SBI, HDFC Bank and Bank of Baroda staying up. The IT sector was rather weak with heavy weights such TCS, Infosys and Wipro opening in the red. Wipro stood out with a loss of almost 2 percent.
The Midcap Index had an action-packed opening with Opto Circuits extending losses after rating agency ICRA suspended rating assigned to its Rs 538 crore fund-based facilities of Opto Circuits. The stock was down 4 percent. Jain Irrigation was down 6 percent after the company’s Q1 net was down 19 percent.
Stocks in news
Kingfisher Airlines - After a week-long rally, the stock opened in the red today, down about 3 percent.
Wockhardt is up 2 percent after the generics maker is nearly free from a debt recast.
IDFC is up close to 2 percent.