Sensex, Nifty fall at open after record breaking rally
The BSE Sensex was trading 194 points or 0.27 lower at 71,289. Nifty50 was trading at 21,412, down 44 points or 0.21% at around 9.20 am.
Among Sensex stocks, JSW Steel, ITC, M&M, Power Grid, ICICI Bank, and Axis Bank traded with cuts, while Titan, Sun Pharma, Nestle, and Bajaj Finance opened with gains.
Mazagon Dock Shipbuilders shares opened 4.6% higher after the company signed individual shipbuilding contracts with European client worth approximately $42 million.
Zee Entertainment Enterprises shares fell over 4% after the firm sought further extension of a merger deadline from the Indian arm of Japan's Sony Group to make the scheme effective.
Experts view
«There are two significant factors driving the ongoing strong rally in the market.
One, FIIs who have made a ‘u’ turn in their strategy have turned big buyers having invested around Rs 20000 crores, including bulk purchase, in the last 2 weeks. Second, the rally is being driven by segments like banking and IT which were under performers for quite some time,» said V K Vijayakumar, Geojit Financial Services.
«Global and domestic factors, except valuations, are favourable for the market.
It makes sense to remain invested, particularly in large caps. Some profit booking can be considered in mid and small caps where valuations are very high,» Vijayakumar said.
Mandar Bhojane, Research Analyst at Choice Broking, said, «Technical charts suggest that the Nifty is in the overbought zone, indicating a potential correction in the near future.
Nifty may find support at 21,250, followed by 21,200. On the upside, 21,600 could serve as immediate resistance, followed by 21,700.»
FIIs net buyer
Foreign portfolio investors (FPIs) purchased shares worth 42,733 crore in the
