Sensex, Nifty open flat as auto stocks shed in early trade; Swiggy up 4%

Benchmark stock market indices opened flat on Tuesday, after closing marginally lower in the previous session due to a slide in FMCG and auto stocks.

The S&P BSE Sensex was down 10.62 points to 81,497.84, while the Nifty50 lost 1.85 points to 24,617.15 as of 9:18 AM.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the market is likely to move in a narrow consolidation pattern in the near-term.

“There are no major triggers that can push the market into a new bull orbit. Also, there are no major triggers that can cause a deep correction from the current levels. Within the range, there are significant down moves and up moves. FMCG stocks are facing selling pressure due to the tepid growth phase they are going through,” he added.

Conversely, financials are resilient and moving up on good prospects and attractive valuations. Since markets have a tendency to overreact, the present weakness in FMCG stocks will give opportunities for investors to accumulate them for the long-term. If there is further correction in this segment some of the bluechips will become attractive buys. The resilience of banking and IT stocks is likely to continue for some more time since there are tailwinds that can support their up move.