Benchmark indices, the Nifty 50 and Sensex opened flat, echoing previous session's trend as investors scout for more cues, including U.S. CPI and Chinese economic data which are set to release on Wednesday and Thursday.
At about 9:20 am, Sensex was down 89.64 points or 0.11 percent at 79,559.28, and Nifty 50 was down 23.80 points or 0.10 percent at 24,323.20. About 1,621 shares advanced, 1,063 shares declined, while 141 shares unchanged.
Follow our LIVE blog for all the latest market updates
Shares of HDFC Bank - India's largest private lender - are down nearly two percent after an MSCI release said the weightage of the lender in the Global Standard index will be increased in two tranches. The Foreign Inclusion Factor (FIF) for HDFC Bank will rise from 0.37 to 0.56, indicating that 56 percent of the bank's shares will be available for foreign investment in the index.
Also read: MSCI lifts restrictions on Adani Group stocks in August 2024 index review
The broader market - mid and small cap indices - showcased a mixed trend, though they have outpaced frontline indices since the start of the year, rising nearly 23 percent. Shares of Ola Electric saw further buying interest in early trade, after two days of strong gains.
India VIX - a barometer to assess anxiety in the market - rose another 0.5 percent, up for the second day in a row, near 16 level.
On macro front, India's retail inflation eased to 3.54 percent year-on-year in July, government data showed, aided by a high base effect. This is the first time in nearly five years that the CPI reading has dipped below Reserve Bank of India's medium-term inflation target of 4 percent.
Read more: FirstCry IPO: Experts look forward to a double-digit premium listing
"Our call suggests a rally may be on the horizon, but Nifty bulls could hold off ahead of the crucial July US CPI report on August 15th. Yesterday's session saw Nifty struggle amidst Hindenburg-Sebi-induced volatility, yet the recovery hints at potential buying opportunities on intraday dips, with confirmation of strength above 24,630," Prashanth Tapse, Senior Vice President at Mehta Equities said.
Among sectors, Nity Realty and Energy were the top gainers, rising 0.4 percent each. Bank Nifty Bank was the only sector in red, led by HDFC following its weightage increase in the MSCI.
"The market which has been climbing all walls of worries has climbed this Hindenburg wall too, instilling confidence in retail investors and DIIs flush with money," says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "However, it is important to understand that Q1 results indicate slight moderation in earnings growth and, therefore, investors need expect only modest returns in FY25. Elevated valuations in the broader market continue to be a concern," he added.
Apollo Hospitals, ICICI Bank, Axis Bank, Kotak Mahindra Bank and JSW Steel were among the major gainers on the Nifty, while losers were HDFC Bank, Divis Labs, LTIMindtree, BPCL and Asian Paints.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
