Snapping fourth straight session gains, Indian stock indices were largely steady in early trade on Thursday. The latest decline in crude oil prices coupled with signs of domestic inflation plateauing has somewhat lent support to the domestic indices in the past few sessions. At 9.29 a.m. Sensex traded at 55,345.16 points, down 52.37 points 0.095 per cent, whereas Nifty was almost steady at16,519.40 points.
Among the Nifty 50 companies, 29 were in the green and the rest in red, National Stock Exchange data showed. “With around 8.5 per cent rally from the June lows, Nifty is likely to consolidate around the present levels before making its next move, which will be influenced by the outcome of the ECB and US Fed meetings due on 21st and 27th July respectively,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The Fed is likely to raise the rate by 75 bp and ECB, perhaps, by 50 bp. But more important than the rate hikes, their commentary on the trajectory of inflation and economic growth would be closely watched. If there are indications that inflation has peaked and is likely to trend down, markets would respond positively,” Vijayakumar added. However, the consistent depreciation in the value of the rupee is a pain point among investors as it hovering around the 80 mark against the US dollar.
“As has been the stance all through the last two days, we will continue our vigil along this the 79.85-80.15 band before playing directional moves, with 79.95 continuing to be a crucial pivot,” said Anand James – Chief Market Strategist at Geojit Financial Services on the rupee.