Sensex and Nifty opened on a positive note on September 10, buoyed by global market gains and robust buying in key sectors like IT and healthcare on the domestic front. However, the indices quickly turned flat as selling pressure mounted on auto and banking stocks.
At 10.00 am, the Sensex was down 61 points or 0.08 percent at 81,498 and the Nifty was down 18 points at 24,918. About 2,270 shares advanced, 819 shares declined, and 117 shares remained unchanged. Buying in IT, telecom, and healthcare stocks kept the Nifty from falling any further.
Market experts advised caution with valuations posing a significant risk. "We have seen a correction in defence and railways to a certain extent. It is possible that other sectors could see a similar correction. So, at these levels, I would be extremely cautious," Ambareesh Baliga, an independent market analyst told Moneycontrol.
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Shares of LTIMindtree, Axis Bank, Tata Consumer Products, Bharti Airtel, and Divis Labs rose 1-3 percent, emerging as the top gainers on Nifty 50. Divi's Laboratories shares rose almost 3 percent, emerging as the top Nifty 50 gainer, with expectations of increased Contract Development and Manufacturing Organisation (CDMO) work being diverted to India. This comes after the US passed the draft Biosecure Act targeting Chinese biotech firms.
Life insurance stocks, including ICICI Prudential, SBI Life, and HDFC Life dropped by up to 2 percent following negative brokerage notes after the August update. Additionally, the GST Council's decision to defer discussions on life insurance until the November meeting added to the pressure. SBI Life and HDFC Life were among the worst performers on the Nifty 50.
Sameet Chavan, Head of Research for Technical and Derivatives at Angel One, notes immediate resistance for Nifty 50 between 25,080 and 25,120. "Support is at 24,750 - 24,700 and a break below this could lead to further weakness towards 24,500," he said.
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In the broader market, both the BSE Midcap and BSE Smallcap indices rebounded, rising by 1 percent, after suffering losses in the previous session.
Wall Street's three major indexes rallied over 1 percent on September 9, as investors sought to bargain buying after last week's sell-off. The Asia-Pacific markets followed suit in early trade today.
Investors are now focused on the US Consumer Price Index (CPI) report, set to be released on September 11, and the initial jobless claims data due on September 12. The data will offer insights into inflation trends just before the FOMC meeting from September 17-18.
Markets will keep a close eye on how the US presidential debate scheduled for tonight, between Democrat Kamala Harris and Republican Donald Trump, unfolds.
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