The benchmark indices on Tuesday continued to trade higher tracking mixed trend seen in Asian markets after US President Donald Trump formally withdrew from the Trans-Pacific Partnership (TPP) trade deal and talked of big border taxes.
On Monday, foreign institutional investors sold equities worth Rs 289 crore, while domestic institutional investors bought equities worth Rs 520 crore.In the broader market, BSE Midcap and BSE Smallcap indices mirrored the gains in headline indices and rose 0.5% each.
“If follow-up selling happens then Nifty may correct towards 8,315 and 8,280 zones. On the upside, it has to sustain above 8,380-8,400 zones to attract buying interest towards 8,480 and 8,510 zones. Index is now finding pressure after the rally of last three weeks, so traders are suggested to remain cautious till market doesn’t get stability at any particular levels,” said brokerage Anand Rathi.
Trump pulls US out of Pacific trade deal
HCL Technologies slipped over 2% after the IT firm reported a 2.30% rise in consolidated net profit at Rs 2,062.04 crore in the December quarter against Rs 2,015.60 crore reported in the September quarter.
Hindustan Unilever fell nearly 2% and was the leading Sensex loser after the company reported a 7% YoY growth in net profit to Rs 1,038 crore in the December quarter, thanks to a one-time exceptional gain of Rs 159 crore.
Acting on his pledge to ‘buy American and hire American’, Trump withdrew the US from the Trans-Pacific Partnership trade deal on Monday, distancing America from its Asian allies, as China’s influence in the region rises.Fulfilling a campaign pledge to end American involvement in the 2015 pact, Trump signed an executive order in the Oval Office pulling the United States out of the 12-nation TPP.
Sectors and stocks
Ajanta Pharma pared most of its losses after cracking over 16% to Rs 1,527 on news reports the USFDA has issued import alert for its Kamarga products.