The Indian market taking weak global cues opened in a positive territory, the benchmark BSE Sensex opened at 58,311.33, up 64.24 points, or 0.11 per cent. However the broader Nifty was trading at 17,402.05, up 22.05, or 0.13 per cent. On NSE, ONGC, Shree Cement, Titan, Hero Motocorp were among the top gainers while BPCL, Axis Bank, Tata Steel, IndusInd Bank were among the laggards. In early trade 33 shares advances, 16 declined and 1 remained unchanged,
“The primary driver of this bull run has been liquidity and therefore a reversal of the trend is likely to happen only with decline in liquidity, particularly capital outflows triggered by FPI selling. Even though there were signs of this happening in July, there are no such signals now. In fact the reverse is happening with continuous FPI buying during the last few days. CPI inflation in US for August coming at below expectations at 5.3 % gives credence to the Fed’s view that inflation is transient. This can support further FPI inflows into India, which, in turn, can impart resilience to the market. But investors should remember that these positive developments are pushing valuations very high.The outperformance of the broader market continues this month with disproportionate rise in some mid-small-cap stocks. There is hyper speculative activity in the broader market. Investors should be cautious operating in this segment,”Dr. V K Vijayakumar, chief investment strategist at Geojit Financial Services said.