D-Street Opens Flat With Positive Bias

The Indian equity markets opened flat with a positive bias on Friday, July 2 taking cues from its global peers as the U.S markets ended at an all-time high for the sixth consecutive session, while the Asian markets were trading mixed. However, some experts are of a view that the correction in the previous sessions in the Indian bourses could lead to a massive rally in the markets going forward.

At the market opening, the BSE Sensex was up 41.92 points at 52360.52, while the Nifty-50 was up 17.70 points at 15697.70. In the 30-share pack Sensex, 20 shares marked gains while 10 shares slipped red. ICICI Bank bagged the top index gainer adding over a per cent, while those of Reliance and Bajaj Finance also surged nearly a per cent each.

Among the sectors, there was a mixed pack as the IT, FMCG, and Metal declined and kept the sentiment muted, while the Banks and Auto played defensives in the early trade on Friday. Shares of Bharat Forge and Exide Industries were the top gainers in the Auto pack, gaining 1.35 and 0.85 per cent, respectively.

Defining the market mood currently, experts feel that the concerns of a third-wave of COVID-19 in the country and exposure of the new variant are keeping the markets in check, adding to the negatives, the PMI figures also played a spoilsport recently. However, a better vaccination drive and monsoon can boost the markets further, said experts.

"We expect the earnings momentum is to accelerate given the pickup in the pace of vaccination and the further opening of the economy. Good monsoon further supports bullish biasedness," said Siddhartha Khemka - Head of Retail Research at MOFSL.
In the overall market breadth at market opening, 1226 shares advanced, 427 shares declined, and 66 shares were unchanged.