Snapping 2-day losses, Indian stocks up in early trade Thursday

NEW DELHI: Indian stock markets started Thursday's trade in the green following positive global cues and a sharp fall in crude oil prices.

The benchmark indices -- Sensex and Nifty - fell during the past two sessions on the likelihood of aggressive rate hikes in the US as indicated by the Federal Reserve.

At 9.26 am, Sensex traded at 59,557.48 points, up 528.57 points or 0.90 per cent, whereas Nifty traded at 17,770.00 points, up 145.60 points or 0.83 per cent.

Today, among the Nifty 50 stocks, 45 advanced and the rest 5 traded in the red, National Stock Exchange data showed.

"There is a clear message from the market now. Despite high valuation, global headwinds from elevated inflation, slowing global economy and an ultra-hawkish Fed, the domestic market has been surprisingly resilient," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The buy-on dips strategy for investors has worked well in this current rally and it makes sense to continue with a similar strategy, Vijayakumar said. "If the rally is to sustain from the current levels, it will need support from the beaten down IT segment, which looks good from the valuation perspective," Vijayakumar added.

According to Mohit Nigam, Head - PMS, Hem Securities: "Indian benchmark indices underperformed the broader indices. We expect current volatility to persist as investors are cautious regarding another 75 bps rate hike by the US Fed."

For fresh cues, Indian investors now await retail inflation data for July, which will be released around mid-month. India's retail inflation fell to 6.71 per cent in July, the lowest level in five months, helped by an easing in food and oil prices, as per the National Statistical Office (NSO) data.

However, retail inflation has been over the Reserve Bank of India's upper tolerance band of 6 per cent for the seventh consecutive month in a row.

Retail inflation was at 7.01 per cent in June. Meanwhile, the initial public offering (IPO) of Tamilnad Mercantile Bank was subscribed 2.86 times at the end of the three-day window which commenced on Monday.

The portion reserved for the retail investors was subscribed 6.48 times, data showed.

The shares are expected to be allotted to dematerialised accounts of successful investors on September 14, and the formal listing on the stock exchanges the next day.