The domestic equity market indices, Sensex and Nifty 50, saw a flat opening on September 3 due to lack of any significant domestic or global catalysts. Banking and IT stocks weighed on the indices, while oil and gas, along with healthcare stocks, emerged as the day's top performers.
The Nifty IT index snapped a six-day winning streak and declined by 0.4 percent.
At 9:16 am, the Sensex was down 19.14 points or 0.02 percent at 82,540 and the Nifty was down 2.5 points or 0.01 percent at 25,276. About 1,598 shares advanced, 738 shares declined, and 147 shares unchanged.
"Although Nifty has been inching higher for the past 13 sessions, we haven't seen any remarkable progress. We've reclaimed record highs, but the movements in most sessions have been less than one percent," said Ajit Mishra, SVP of Research at Religare Broking. "The tone remains positive, but I feel that until we see participation from the banking sector, it's unlikely that we will see a significant move towards the next milestone of 26,000. However, it's still a 'buy on dip' market."
Follow our live blog for all the market action
Among stocks, Hindustan Aeronautics rose over 3 percent after cabinet approved procurement of 240 aero-engines for Su-30 MKI aircraft worth Rs 26,000 crore. Aadhar Housing Finance shares rose 5 percent after Kotak Institutional Equities initiated 'buy' call on the company. Kaynes Technology also gained 5 percent after the company received the cabinet's nod to set up a semiconductor unit in Gujarat.
As for the broader markets, analysts expressed caution over its current valuations. The market breadth isn't very conducive either. Despite this, the indices maintain positive momentum, likely due to rotational buying, said analysts.
At 9:20 am, the BSE Midcap index rose by 0.3 percent, while the Smallcap index gained 0.5 percent. The India VIX, which had surged 5 percent in the previous session, eased by 0.4 percent in the morning session on September 3.
According to Mandar Bhojane, Technical Analyst at Choice Broking, Nifty has formed a support base around the 25,100 and 25,000 levels, which can act as immediate support and a buying opportunity. "If Nifty closes above the 25,300 level, short-term targets could be 25,500 and 25,700," he said.
Also Read | Index of PSU stocks takes a beating in August as overall share in m-cap dips
The U.S. stock market was closed on September 2 for the Labor Day holiday. Meanwhile, Asian markets traded mostly higher on September 3, buoyed by South Korea's inflation data, which eased to its lowest level on a year-on-year basis since March 2021.
This week is filled with crucial economic data, most notably the U.S. payrolls report on September 6, which will influence the magnitude of interest rate cut by the Federal Reserve. The market is pricing in the chance of a 25 basis points (bps) cut at the Fed's September 17-18 meeting.
The job openings data on September 4 and the jobless claims report on September 5 will also be closely monitored.
Today, shares of Hindalco, Shriram Finance, Cipla, Tata Motors, and ONGC were the top gainers on Nifty 50 while Kotak Mahindra, Grasim, Coal India, Dr Reddys Labs, and Titan Company were the biggest losers.
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!
