Sensex, Nifty open flat as investors take breather after record run

Benchmark stock market indices opened Wednesday’s trading session flat, snapping their record run for the past four sessions.
The S&P BSE Sensex was down 20.70 points to 84,893.34 at 10:23 am, while the NSE Nifty50 fell 18.20 points to trade at 25,922.20.
All the other broader market indices were trading in negative territory as the momentum seen over the past few trading sessions seems to have fizzled out.
The top five gainers on the Nifty50 were Power Grid, HDFC Bank, Divi’s Lab, M&M and Hindalco.
On the other hand, the top losers were Tata Consumer Products, LTIM, Tech Mahindra, Britannia and Tata Motors.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The Chinese monetary stimulus measures lifted the Chinese and Hong Kong markets yesterday and if the rally continues it is possible that FIIs will move more funds to invest in these markets which are highly attractive on valuations.”
“In India, metal stocks rallied in response to the Chinese stimulus measures,” he added.
He went on to say that it remains to be seen whether the “Chinese monetary stimulus will have an enduring positive impact since China’s economic woes are structural and difficult to address through a monetary stimulus”.
It is more likely that the positive sentiments now being felt may soon dissipate and weaken, Vijayakumar noted.
He explained that the gush of domestic liquidity, which is the main driving force behind the rally in India, is likely to keep the market resilient. “If Nifty is to go past 26000 decisively and sustain there, it has to be led by the Bank Nifty. There is more steam in this segment.”