Benchmark stock market indices gained after opening lower in early trade as weak earnings in the second quarter and persistent selling by foreign investors dampened the mood on Dalal Street.
The S&P BS Sensex was 65.31 points to 79,607.10 at 10:24 am, while the NSE Nifty50 was up just 5.30 points to 24,204.65.
Most of the other broader market indices were trading in red, reflecting the negative sentiments among investors.
While the Nifty IT index gained, losses in banking, financial services and other heavyweight stocks pulled down the benchmark indices.
The top 5 gainers on the Nifty50 were Wipro, Infosys, Tech Mahindra, Hindalco and Bel.
On the other hand, the top losers were Trent, BPCL, Dr Reddy’s, Coal India and ICICI Bank.
RVNL shares fell over 5% during the session after its net profit declined 27% year-on-year.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Two divergent trends are evident in the market now: one, strength in the global market led by the US and two, weakness in the Indian market.”
“The weakness in the Indian market can be attributed largely to the relentless selling by FIIs which continues this month, too. After the massive FII selling of Rs 1,13,858 crore in October, FIIs have so far, in November, sold equity for Rs 16,445 crore in the cash market. The rationale for the FII selling is, the elevated valuations in India which appear conspicuous in the context of the earnings deceleration evident in the Q2 numbers,” Vijayakumar explained.
“Investors will have to wait and watch for the data. Meanwhile, investors can consider shifting some money from the overvalued mid and smallcaps to quality largecaps. This strategy will turn profitable in the medium to long run,” he added.
