Sensex, Nifty trade flat amid weak global trends

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| Photo Credit: Reuters

Benchmark stock indices Sensex and Nifty traded flat in early trade on July 7 due to profit-taking in financials and IT shares amid weak global cues.

The 30-share BSE Sensex opened lower and fell further by 294 points to hit a low of 65,785.64 in early trade.

The BSE barometer was trading at 65,767.85, down by 17.79 points or 0.03% over the last close, at 9.40 a.m. The broader Nifty of the National Stock Exchange was marginally up 1.25 points or 0.01% at 19,498.55. It moved between 19,499.55 and 19,421.60 in early trade.

Among Sensex stocks, Nestle, IndusInd Bank, PowerGrid, ICICI Bank, Bajaj Finance, Kotak bank, HCL Tech, HDFC Bank, Infosys and Tech Mahindra declined due to profit-taking after a record rally.

Titan, M&M, Maruti, Reliance, Sun Pharma, NTPC and Tata Steel were among major gainers, providing support to the benchmark index.

In global markets, stocks in Hong Kong, Japan and Australia declined following overnight losses in the U.S. equities as reports suggested the U.S. job market remains much more resilient than expected.

As a sturdy labour market keeps the economy out of a long-feared recession, it could also push the U.S. Federal Reserve to keep interest rates higher for longer in its campaign to defeat high inflation.

“It would be difficult for this rally to sustain since the global market construct is turning unfavourable with major weakness in the developed markets and rising bond yields,” V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services said. Global oil benchmark Brent crude climbed 0.25% to $76.70 a barrel.

Defying a weak trend in the global markets, the Sensex climbed 339.60 points or 0.52% to settle at an all-time closing high of 65,785.64 on Thursday. The NSE Nifty rallied 98.80 points or 0.51% to end at a record high of 19,497.30.

Foreign Institutional Investors (FIIs) continued their buying activity as they bought equities worth ₹2,641.05 crore on July 6, according to exchange data.