The Sensex and Nifty started the first trading day of the year on a positive note today. While the Sensex rose 93 points to 36,161, Nifty gained 19 point to 10,881. Of 30 Sensex stocks, 23 were trading in the red.
Bharti Airtel (0.85%), Bajaj Auto (0.42%) and Axis Bank (0.44%) were the top Sensex gainers. Top Sensex losers were PowerGrid (1.11%), Hero MotoCorp (0.68%) and Bajaj Finance (0.23%).
Top sectoral losers were auto and banking stocks with the BSE auto falling 86 pts to 20,746 and BSE bankex losing 69 pts to 30,306. BSE metal also shed 71 points to 11,767 level.
Dhiraj Relli, MD & CEO, HDFC Securities said," Broader market could do well especially in H2CY19 on expectations of earnings pickup among Indian corporates post Q4FY19 along with resumption of FII flows into India around and post general election time. Mutual fund inflows in India are on a structural up move driven by greater financialisation of savings. Softening stance (including a probable rate cut) by the RBI in early 2019 could help valuations.
Continuation of Trade tiffs, resumption of bullishness in crude oil prices, continuation in rate increases by the US Fed and unstable outcome from general elections remain key risks to achieving the above.
The Nifty has the potential to touch 12,400 during CY2019. This is based on various factors, namely the expectations of an earnings pick-up in Indian corporates post Q4FY19, and the resumption of FII inflows to the Indian markets around and post the general elections."
Meanwhile, the mid cap and small cap indices were trading 16 points lower and 3 points higher in early trade.
Market breadth was marginally positive with 726 stocks trading higher compared to 607 falling on the BSE.
"We're looking at a flattish market with a target of 10,400-11,000 for Nifty in the first six months. There is uncertainty with respect to global liquidity," said Dhananjay Sinha, head-Institutional Research, Economist and Strategy at Emkay Global Financial Services.
On Monday, benchmark US crude oil inched up 0.2 percent to settle at $45.41 a barrel in New York. Brent crude, the benchmark for international prices, gained 1.1 percent to $53.80 a barrel in London.
On Monday, the Sensex and Nifty closed on a flat note on the last trading day of this year amid higher global markets in subdued New Year's Eve trading. While the Sensex closed 8 points lower at 36,068, Nifty ended two points in the green at 10,862.
Wall Street closed out a dismal, turbulent year for stocks on a bright note Monday, but still finished 2018 with the worst showing in a decade.
On Monday, the S&P 500 index rose 21.11 points, or 0.9 percent, to 2,506.85. The Dow gained 265.06 points, or 1.2 percent, to 23,327.46. The Nasdaq added 50.76 points, or 0.8 percent, to 6,635.28. The Russell 2000 index of smaller-company stocks picked up 10.64 points, or 0.8 percent, to 1,348.56. It finished 12.2 percent lower for the year.
All financial markets in Asia are closed on Tuesday for a public holiday.
Edited by Aseem Thapliyal