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12.03.2024, 02:15

Sensex: Higher Gift Nifty futures point to a positive open, as focus stays on India/ US CPI data

  • India’s Sensex is set to rebound at Tuesday’s open, following a negative close on Monday.
  • Sensex corrected further on Tuesday amid profit-taking before Tuesday’s key event risks.
  • All eyes remain on the US and Indian CPI inflation data slated for release later on Tuesday.

The Sensex 30, one of India’s key benchmark indices, is set to open with gains on Tuesday, having extended its pullback from record highs on Monday to settle sharply lower.

Gift Nifty futures are rebounding 0.12% so far, suggesting a positive start to Tuesday’s trading for Sensex.

The Indian stock index suffered amid declines in global stock markets and heavy losses in the banking sector stocks. Traders were in a risk-averse position, refraining from placing any fresh bets on risky assets ahead of Tuesday’s Consumer Price Index (CPI) inflation data from India and the US.

The Bombay Stock Exchange (BSE) Sensex 30 ended 0.83% lower on the day near 73,500.

Stock market news

  • The top gainers on Sensex were Nestle, HCL Tech, Bajaj Finance, Bajaj FinServ and ITC. Meanwhile, the top losers included SBI Bank, IndusInd Bank, Tata Steel, Power Grid and HDFC Bank.
  • Several Tata stocks fell up to 10% as Tata Sons IPO looks unlikely. The company seems to be exploring other options to adhere to the Reserve Bank of India (RBI) norms.
  • Securities and Exchange Board of India (SEBI) barred JM Financial from acting as lead manager of any public debt issue.
  • IndiGo co-founder Rakesh Gangwal likely to sell a higher stake of 5.8%, looks to raise Rs 6,600 crore.
  • The US stock markets ended in the red on Friday, as investors resorted to profit-taking amid high valuations and gearing up for the critical US inflation report.
  • On Friday, the headline NFP rose by 275K in February, compared to market forecasts of 200K while the January figure of 353K was revised down to 229K, a difference of 124K. 
  • Markets are currently pricing in about a 70% chance that the Fed could begin easing rates in June, a tad lower than a 75% probability seen Monday, according to the CME FedWatch Tool.
  • The main event risks for markets this week will be the inflation data releases from India and the US.

Sensex FAQs

The Sensex is a name for one of India’s most closely monitored stock indexes. The term was coined in the 1980s by analyst Deepak Mohoni by mashing the words sensitive and index together. The index plots a weighted average of the share price of 30 of the most established stocks on the Bombay Stock Exchange. Each corporation's weighting is based on its "free-float capitalization", or the value of all its shares readily available for trading.

Given it is a composite, the value of the Sensex is first and foremost dependent on the performance of its constituent companies as revealed in their quarterly and annual results. Government policies are another factor. In 2016 the government decided to phase out high value currency notes, for example, and certain companies saw their share price fall as a result. When the government decided to cut corporation tax in 2019, meanwhile, the Sensex gained a boost. Other factors include the level of interest rates set by the Reserve Bank of India, since that dictates the cost of borrowing, climate change, pandemics and natural disasters

The Sensex started life on April 1 1979 at a base level of 100. It reached its highest recorded level so far, at 73,328, on Monday, January 15, 2024 (this is being written in Feb 2024). The Index closed above the 10,000 mark for the first time on February 7, 2006. On March 13, 2014 the Sensex closed higher than Hong Kong’s Hang Seng index to become the major Asian stock index with the highest value. The index’s biggest gain in a single day occurred on April 7, 2020, when it rose 2,476 points; its deepest single-day loss occurred on January 21, 2008, when it plunged 1,408 points due the US subprime crisis.

Major companies within the Sensex include Reliance Industries Ltd, HDFC Bank, Axis Bank, ITC Ltd, Bharti Airtel Ltd, Tata Steel, HCL Technologies, Infosys, State Bank of India, Sun Pharma, Tata Consultancy Services and Tech Mahindra.

 

 

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