The key benchmark indices opened flat on Monday morning amidst mixed global cues. S&P BSE Sensex quoted at 61,636 levels, down over 50-odd points, whereas Nifty50 was flat below 18,200 levels.
Broader markets, too, were subdued in trade, with Nifty Midcap 100, and Nifty Smallcap 100 indices declining up to 0.2 per cent.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The near-term uncertainty in the global equity markets is likely to continue since there is no resolution yet on the US debt ceiling issue. A strong rally will happen only after this impasse is out of the way."
“The undercurrent of the market is bullish. Bank Nifty is likely to gain more traction since the Rs 2000 note withdrawal is positive for banks. It will add to the deposits of banks and increase their CASA thereby boosting their bottom line," he added.
He further said: “An important message for investors is that interest rates have peaked, globally as well as in India, and this is positive for equity markets in the second half of CY 2023. Rate sensitives like financials, real estate/construction and autos will benefit from a probable rate cut by end 2023. From the valuation perspective, IT stocks are good value buys now."
Global Cues
Globally, the US markets fell on Friday as investors fretted over debt default. Dow Jones, the S&P 500, and NASDAQ Composite indices slipped up to 0.3 per cent.
However, recent reports indicate that President Joe Biden and Republican House Speaker Kevin McCarthy had a positive conversation on Sunday. Both the leaders are set to meet today, 10 days away from the deadline (June 1).
Asia-Pacific markets, too, exhibited weakness this morning, with Nikkei 225, Topix, the S&P 200 indices declining up to 0.1 per cent.