The Indian markets, for the second straight session on Tuesday, opened in the green ahead of Life Insurance Corporation of India (LIC) shares’ debuted on the exchanges. The BSE Sensex rose over 311 points, while Nifty50 started above the 15900-mark on the market open today.
At the market open, the BSE Sensex surged over 311 points or 0.59 per cent to 53285.2 levels, while Nifty50 gained over 70 points or 0.44 per cent to 15912.6 levels. Following the benchmarks suite, the broader markets – Nifty mid-cap 100 and small-cap 110 gained between 0.5 and 1 per cent.
The 12-share banking index – Nifty Bank too gained almost 200 points or 0.6 per cent at the open, mainly guided by the surge in Bandhan Bank and Bank of Baroda for the second session in a row.
Of 50 scraps on Nifty, 39 advanced and 11 declined in the early morning trade. Hindalco surged most to become a top Nifty gainer, up over 4.5 per cent, followed by ONGC up over 2.5 per cent, and Tata Steel up over 2 per cent. JSW Steel and RIL each gained between 1.5 and 2 per cent at the open.
On the contrary, Cipla slipped most to become a top Nifty loser, down over 1 per cent minutes after the market open, followed by Asian Paints down over 0.5 per cent. While other stocks such as Tata Consumer, Sun Pharma, Shree Cement, Divis Lab declined marginally in a positive market today.
Except for Pharma, all other sectoral indices are in the green minutes after the market open. Nifty Metal surged most by almost 3 per cent, followed by Nifty Bank and Financials along with Auto each up between 0.5 and 1 per cent in the early morning trade.
“The major event of the day is the LIC listing. The performance of LIC stock post listing will have a near-term sentiment impact on markets,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said in his market open comment.
He expected that the markets will remain highly volatile in the short term, besides, high inflation and Fed tightening will continue to be short-term challenges for the market.
In the medium-term, there is a possibility of inflation peaking off and if that happens the central banks may not tighten as much as the market fears now, the market analyst said.
“In such a scenario, markets can bounce back sharply. But this is some time away. In the near term, the market is likely to remain weak amidst high volatility. Long-term investors can buy high-quality stocks across sectors, particularly in financials, IT, and pockets of autos,” Vijayakumar added.