Stock market: Sensex, Nifty rebound from lows, trade flat; IT stocks drag. Check LIVE updates
2 min read . Updated: 08 Mar 2023, 02:02 PM IST
Premium- Sensex, Nifty opened in the red on Wednesday tracking weak global cues
Sensex, Nifty opened in the red on Wednesday tracking weak global cues after US Federal Reserve’s chief signalled officials were ready to speed up the pace of tightening, but later rebounded to trade flat-to-negative. IT stocks were key laggards, dragged by HCL Tech, Infosys. Meanwhile, Adani Group stocks continued to gain.
The benchmarks BSE Sensex and Nifty opened lower today, however, rebounded in with Sensex almost flat to trade above 60,000 at 60,141, down 83 points in afternoon deals whereas Nifty was hovering around 17,698, lower by 0.08%. IndusInd Bank, L&T, Tata Steel are among the top gainers at the moment.
Stock, commodity and money markets were closed on Tuesday on account of Holi. On Monday, Sensex closed at 60,224.46 points while Nifty ended the day at 17,711.45 points.
The rupee weakened as US dollar strengthened. Resuming trade after a one-day holiday, the currency fell to 82 per dollar as compared with its previous close of 81.91.
Federal Reserve Chair Jerome Powell on Tuesday said the latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated.
“Investors’ attention will be on Powell’s semiannual congressional testimony on Tuesday and Wednesday, and then on Friday to the nonfarm payrolls report, which will show whether wage growth is being contained, an important consideration for the central bank," said Deepak Jasani, Head of Retail Research, HDFC Securities.
Nifty outlook
On Nifty, Jasani said, “The index faced resistance from the downgap made on Feb 22 and corrected intra day, though ending in the positive. It also rose with an upgap, giving bullish indications. Nifty needs to break the 17600-17800 band for cues on future direction."
“Bears having resurfaced on approach to 17800 unanticipated lines, the downside marker may be pushed higher to the 17680 neighbourhood. Inability to float above the same, may see Nifty gradually slipping towards 17480/50. Favoured view sees at least one more attempt to scale the 17800/855 barrier and until then, a collapse is less expected," said Anand James - Chief Market Strategist at Geojit Financial Services.