Sensex, Nifty open in green as IT and auto stocks rise; Bajaj Auto gains 4%
Benchmark stock market indices opened higher, extending their gains from the last trading session, helped by a rise in IT and auto sector stocks in early trade.
The S&P BSE Sensex added 221 points to 76,122.41, while the NSE Nifty50 gained 66.40 points to 23,023.65 as of 9:35 AM.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the recovery in the market witnessed yesterday can continue with resilience in fairly priced financials.
“However, a sharp rally is unlikely since FIIs will sell at higher levels. The market will be looking forward to positive cues in the Budget. The Fed decision today is unlikely to influence the market since no change in policy is expected from this meeting,” he added.
YTD Nifty is down 3.3% while Nifty Midcap is down 9.1% and Nifty Small cap is down 14.71%. The takeaway from this important data is that valuations are reverting to mean. This trend will make the market healthy and is likely to continue. Correction in the overvalued broader market is desirable.
