Indian stocks in green Tuesday; US Fed minutes eyed for fresh cues
Nov 21, 2023
New Delhi [India], November 21 : Indian stock benchmarks kicked off Tuesday's trade in the green after a lull in the previous session, largely tracking firm overnight gains in the US markets.
At the opening bell, Sensex and Nifty indices in India were around 0.5 per cent higher each from their Monday closing. Barring Nifty FMCG, all other sectoral indices were substantially this morning with Nifty Metal the top mover.
On Monday, markets started the week on a subdued note and closed almost unchanged.
"Amid all, we reiterate our bullish view on the index and suggest continuing with the "buy on dips" approach. Traders should stick with the other performing sectors and utilise this phase to gradually add quality names," said Ajit Mishra, SVP - Technical Research, Religare Broking.
Going ahead, the US Federal Open Market Committee minutes from its last meeting, due on Tuesday, will be eyed by investors for fresh market direction. The minutes will likely give some idea about the future course of monetary policy action of the US central bank.
This week will also see several IPOs up for subscription in the Indian stock exchanges. Reportedly, Tata Technologies, Indian Renewable Energy Development Agency (IREDA), Fedbank Financial Services, Flair Writing Industries, and Gandhar Oil Refinery will be opening their IPOs for subscription.
"While the recent softening of inflation in the US & India and the negative trend of crude are expected to help the view on global equity and India in the short term. In that context, the ease in FIIs selling is helping the domestic markets but continues to consolidate primarily due to India's premium valuation relative to global peers," said Vinod Nair, Head of Research at Geojit Financial Services.
"In this scenario, the IT sector is benefiting; however, valuation continues to be on the higher side compared to long-term history, suggesting a cautious approach in the sector in the medium term," added Nair.
