Market Reality
India's equity markets, long buoyed by strong economic growth and rising corporate earnings, are now facing a sharp and prolonged correction.
Stocks lost early gains to trade flat in morning session as banking, auto, FMCG and energy shares witnessed selling despite strong global cues.
The BSE Sensex was trading down by 36.06 points or 0.11 per cent at 33,776.69 at 0950 hrs.
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The 30-share index had risen by 148.38 points, or 0.43 per cent, to 33,961.13 in opening trade with all sectoral indices led by realty, power and infrastructure advancing by up to 0.82 per cent.
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The broader Nifty also surrendered gains to trade down by 3.95 points or 0.04 per cent at 10,431.60.
SBI dropped the most by over 1 per cent among Sensex scrips. Hindustan Unilever, Kotak Bank and Asian Paints also dropped yup to 1 per cent.
Stocks failed to hold onto gains after positive core industry data. Infra sector grew at the fastest pace in more than a year at 6.8 per cent in November 2017 on the back of robust performance in segments like refinery, steel and cement.
The big gainers that supported the Sensex include ONGC, NTPC, Coal India, Dr Reddy’s, HDFC Bank, IndusInd Bank, and Bharti Airtel, rising by up to 1.87 per cent.
In the auto space, Bajaj Auto, Tata Motors and M&M too were in keen demand largely on the back of encouraging sales data for December and gained up to 1.51 per cent.
Elsewhere in Asia, Hong Kong’s Hang Seng rose 1.58 per cent while Shanghai Composite index up 1.18 per cent in early trade on Tuesday. Japanese markets remained closed on Tuesday for an extended new year holiday.
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