Indian stocks start fresh week on a steady note

New Delhi [India]: Indian stock indices started fresh week largely on a steady note, with weak cues from global benchmark US markets coupled with uncertainty over monetary policy rates in the United States.

At the opening bell, Sensex and Nifty indices in India were less than 0.1 per cent lower from their Friday closing. Among the Nifty 50 stocks, Coal India, Divis Labs, Apollo Hospitals, HCL Technologies, and NTPC were the top five gainers, while Axis Bank, Nestle India, Mahindra and Mahindra, Kotak Mahindra Bank, and Asian Paints the losers.

Among the sectoral indices, Nifty IT, Nifty realty, Nifty pharma, and Nifty PSU bank were the top gainers, while Nifty private bank was the top loser.

“Our view is that the overall market situation is positive, but due to a temporary overbought situation, we may see some range-bound action,” said Shrikant Chouhan – Head Equity Research, Kotak Securities.

Till last week, markets extended their bullish tone for the third successive week and gained over a per cent.

“Global cues are largely dictating the trend and we expect this trend to continue in the coming week as well. Among all the major indices, the US markets are showing noticeable strength and have recovered considerably in the last three weeks,” 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.

“There is momentum in large-cap IT stocks. The expectation that the US will not tip into a sharp recession has improved the prospects for IT. Autos, telecom, capital goods and construction-related segments are likely to remain resilient. Banking stocks bouncing back is only a matter of time,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.