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Muhurat Trading: Nifty Struggles Around 10,200; Banks, Metals Drag

NDTV logo NDTV 19-10-2017 NDTV Profit Team
© REUTERS/Danish Siddiqui

Sensex edged lower in the early part of the one-hour special trading session, also known as Muhurat trading, which marks the beginning of Samvat year 2074. Sensex, the BSE benchmark index, was down around 80 points while the Nifty struggled to hold the 10,200 mark. Metal and banking stocks weighed with UltraTech Cement, Coal India, Wipro, ICICI Bank and ONGC among the top losers in the Nifty50 pack. Bharti Airtel, Reliance Industries, Lupin, SBI and Infosys were among the top gainers.

Investors have reaped strong returns from last year's Diwali to Diwali 2017. During this period, the Sensex gained 16 per cent and the Nifty 18 per cent. Small-cap and mid-cap indices rose even more. Despite demonetisation and GST hurting economic growth in June quarter, a key factor supporting the rally in domestic stock markets has been record inflows into equity mutual funds. Optimism earnings recovery and a pick-up in economic growth also supported the rally. A global equity rally also lifted the domestic sentiment.

"The Indian economy has undergone major structural changes in the last one year, starting with demonetization in November 16, which was immediately after Diwali (which was in end-October 2016), followed by the implementation of GST in July 17, both of which have led to some disruptions on the demand and supply side," ratings agency Care Ratings said in a report.

Analysts expect the domestic stock markets to give strong returns for Samvat 2074. Domestic brokerage Kotak Securities has a target of 11,850 for Nifty while on the downside it sees 9,400 to act as a major support for the market. Among the sectors, Kotak remains positive on energy, metals and cement stocks.

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