Indian stocks, following weak global cues, are likely to begin the trading session on Tuesday (August 27) on a slightly negative note. At around 9:16 am, Nifty was trading weakly 0.01 percent at 25,007.4, while Sensex was down 0.05 percent at 81,657.77.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, said Nifty and Sensex continued their uptrend unabated with Nifty posting seven consecutive days of gains. Bulls are celebrating as Nifty once again crosses the psychological milestone of 25,000 and targets an all-time high of 25,078.30.
The market’s optimism is supported by Jerome Powell’s clear signal of possible rate cuts, which are expected at the Fed meeting in September and depend on the upcoming inflation and employment reports. Against this optimistic backdrop, all eyes are also on Nvidia’s earnings report and its potential impact on technology stocks.
At the sector level, metal, realty, auto and private banking indices traded marginally lower, while all other indices were up with pharma and PSU banks posting the most gains.
Meanwhile, Nifty’s crucial support is at 24,750, Tapse added.
As investors await key earnings from Nvidia Corporation, IT stocks in India are likely to mirror US market performance in overnight trading.
Dr VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “The biggest tailwind is from the expected Fed rate cuts, which will also impact other central banks including the RBI. The Indian economy needs monetary stimulus through rate cuts now and these are likely to come up at the next monetary policy meeting,” he added.
If geopolitical tensions lead to price declines, DIIs and retail investors are likely to buy these rates. Financials, especially banks and other interest rate sensitive sectors like real estate and autos are likely to be the preferred sectors for institutional buying. Investors can take advantage of market weakness to buy leading bank stocks and other interest rate sensitive sectors in these segments. Segments like paints, adhesives and tires that use crude oil as raw material will become weak.
Stocks in focus:
Paytm: Paytm shares traded 1.7 percent higher despite SEBI issuing a notice to the company.
DMart: Shares of DMart traded with a marginal gain of 0.5 percent at Rs 4,987 even as CLSA maintained its outperform rating on the stock with an increased target.
