Tech Mahindra, Asian Paint, Bajaj Finance, Hindustan Unilever and ITC were the laggards down up to 2.5 per cent, in the early morning trade
The BSE Sensex on Thursday opened 287.32 points higher at 66,118.69, while the NSE Nifty started the day with 45.35 points up at 19,661.80. As of 9.32 am, the domestic equity market ceded some of its initial gains with the Sensex trading 66.17 points up and the Nifty 17.33 points higher. The rupee on Thursday also edged up 1 paisa to 83.21 against the US dollar in early trade.
L&T, Axis Bank, Tata Steel, JSW Steel and Sun Pharma were the top-performing stocks rising up to 1.6 per cent; while Tech Mahindra, Asian Paint, Bajaj Finance, Hindustan Unilever and ITC were the laggards down up to 2.5 per cent, in the early morning trade.
V K Vijayakumar, chief investment strategist at Geojit Financial Services, said, “Even though the market is showing resilience, the undercurrent is weak. The dollar index at 106.59, the U.S. 10-year bond yield at 4.62 per cent and Brent crude above $97 are strong headwinds that can pull the market down. FIIs who have sold for Rs 21,640 in the cash market in September, so far, are likely to sell more.”
Investors have to be cautious at this stage. Profit booking in the mid-and small-cap stocks which have shot up on hope and aggressive buying would be a good strategy. There is safety in large caps, particularly in segments like banking/financials, capital goods and autos, he added.