NEW DELHI: NEW DELHI: The domestic market opened on a firm note on Tuesday, with the benchmark Sensex rising nearly 150 points ahead of the discussion on GST bill in Rajya Sabha on Wednesday.
Sentiment also remained upbeat as markets globally await details of Japan’s 28 trillion yen ($273 billion) stimulus package.
“We believe the market is cognisant of the fact that the GST is going to be a gamechanger. It is probably the most significant tax-related improvement we will see in some time. Hence, it has really improved the sentiment or valuation of the domestic stock market,” said Nilesh Shah, MD of Kotak AMC.
At 9.30 am, the Sensex was trading 146.83 points, or 0.51 per cent, higher at 28,146.24. The NSE barometer Nifty50 rose 36.90 points, or 0.43 per cent, to 8,673.45.
The gains were led by buying in index heavyweights such as ITC, HDFC Bank, L&T and Maruti Suzuki.
Here’s how Sensex stocks were performing:
The Nifty50 is locked in the crucial range between 8,625 and 8,750 marks, where a break down may lead the index further lower, while a decisive rise above the 8,750 mark may trigger strong gains, experts said.
Mid and smallcap indices too advanced up to 0.50 per cent.
Indian Bank, Voltas, Century Plyboards, EIH, UFO Movies, Torrent Power, Wonderla Holidays and Zydus Wellness will be among the companies announcing their June quarter earnings during the day.
Here are some of the factors that are influencing the sentiment today:
Nifty50 to find support in the 8,625-8,610 range: The index is locked in the crucial range between 8,625 and 8,750 marks, where a break down may lead the index further lower, while a decisive rise above the 8,750 mark may trigger strong gains, experts said.
“The breakout of the range will hold the key for the rest of the week. The stock market is expected to move much higher, if it manages to break out of the 8,750 level. An important support is at 8,625-8,610 levels and resistance is visible around the 8,700-8,750 levels,” said Rohit Gadia, Founder & CEO, CapitalVia Global Research.
Mazhar Mohammad, Chief Strategist for Technical Research and Trading Advisory, Chartviewindia.in, said there has been a lack of convictions among the bulls to push the prices higher in the absence of any fundamental trigger.
“It appears the market is not ready to move higher unless some clarity emerged on the GST front. Till then, the market is likely to remain choppy and volatile. However, a close below the 8,600 level is likely to damage the technical picture in the short term, where a decisive close above the 8,700 level can tilt the trend in favour of the bulls,” Mohammad said.
Earnings to trigger stock-specific action: A handful of companies are going to announce their March quarter earnings during the day. Among them are Indian Bank, Voltas, Century Plyboards, EIH, UFO Movies, Torrent Power, Wonderla Holidays and Zydus Wellness.
A total of 380 companies will report their quarterly earnings this week. Another 73 firms would report their numbers on Saturday.
Asian markets stay negative: Most Asian markets were trading lower this morning. Japan’s benchmark Nikkei was trading 0.70 per cent lower at 16,519. China’s CSI300 fell 0.04 per cent to 3,175.03. Other Asian indices, including South Korea’s Kospi (down 0.37 per cent) and Taiwan’s TWSE (down 0.06per cent), were trading sideways.
US markets ended lower on Monday: The Dow Jones industrial average index dropped 27.73 points, or 0.15 per cent, to 18,404.51. The S&P500 index fell 2.76 points, or 0.13 per cent, to 2,170.84. The Nasdaq Composite ended 22.07 points, or 0.43 per cent, lower at 5,184.20.
US crude tumbled below $40 a barrel on Monday for the first time since April, as oil prices settled nearly 4 per cent lower on heightened worries of a crude oil glut despite peak summer fuel demand, Reuters reported.
US West Texas intermediate (WTI) crude slipped to $39.86, lowest since April 20, before settling at $40.06, down $1.54, or 3.7 per cent.
Brent crude closed $1.39, or 3.2 per cent, lower at $42.14 a barrel, after a session low of $41.87, Reuters said.