Sensex, Nifty open lower amid mixed global cues

Mumbai, Nov 11 (IANS) The Indian benchmark indices opened mildly in red on Tuesday, amid progress on the US shutdown bill and optimism regarding an India-US trade deal soon.

As of 9.25 am, the Sensex was down 177 points, or 0.21 per cent at 85,338 and the Nifty inched down 51 points, or 0.20 per cent to 25,523.

The broadcap indices performed better than benchmarks, with the Nifty Midcap 100 down only 0.09 per cent and the Nifty Smallcap 100 losing 0.06 per cent.

TCS, Tech Mahindra and Dr Reddy's Labs were among the major gainers in the Nifty Pack, while losers included Bajaj Finance, Bajaj Finserv, Shriram Finance and Asian Paints.

Sectoral indices were trading mixed with most of them trading with mild negative bias. Nifty IT was the standout gainer up 0.31 per cent, while financial services, FMCG, Pharma and PSU Bank down 0.71 per cent, 0.49 per cent, 0.16 per cent and 0.57 per cent respectively.

"Nasdaq bounced back 2.2 per cent after the AI trade was weak last week. The return from AI stocks may take longer than expected, but there is no bubble in AI stocks, unlike the Tech bubble that crashed in 2000," said market watchers.

They noted that Nasdaq PE was above 70 and many tech stocks were above 150 in March 2000, and AI stock PE valuations now range from 28 to 51, while Nasdaq's PE is 32.

Most of the Asia-Pacific markets rose in early trading sessions on Tuesday tracking Wall Street gains on revived optimism regarding artificial intelligence stocks.

The US markets ended in the green zone overnight, as Nasdaq jumped 2.27 per cent, the S&P 500 added 1.54 per cent, and the Dow inched up 0.81 per cent.

In Asian markets, China's Shanghai index lost 0.46 per cent, and Shenzhen dipped 0.67 per cent, Japan's Nikkei added 0.43 per cent, while Hong Kong's Hang Seng Index eased 0.29 per cent. South Korea's Kospi jumped 1.38 per cent.

On Monday, foreign institutional investors (FIIs) sold equities worth Rs 4,889 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 1,787 crore.

--IANS

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