Equity benchmarks continued to consolidate in opening on Thursday, ahead of expiry of January futures and options contracts.
The 30-share BSE Sensex was down 12.03 points at 36,149.61 and the 50-share NSE Nifty fell 4.30 points to 11,081.70.
The market breadth was balanced as about 683 shares declined against 602 advancing shares on the BSE.
After PSU banks' recapitalisation amount announcement, SBI, PNB and Bank of Baroda were down 1-3 percent. However, IDBI Bank, Bank of India, UCO Bank, Central Bank of India, IOB, Union Bank, OBC, United Bank, Syndicate Bank, Bank of Maharashtra, Dena Bank and Corporation Bank rallied 2-10 percent.
L&T Infotech, Bharat Bijlee, Everest Industries and KEI Industries rallied post earnings. Biocon lost 4.5 percent after bad earnings.
The year 2017 belongs to high beta stocks which remained in limelight throughout the year but the year 2018 is likely to belong to quality or largecaps stocks, that’s the verdict coming from experts.
The valuations of Indian markets look stretch but after a strong rally seen in the small and midcaps, analysts’ advise experts to either book profits partially or switch part of their holding to largecaps. A rotation trade already started witnessing just last week.
The rupee gained 19 paise to 63.49 against the US dollar in morning today on increased selling of the American currency by exporters and banks.
Besides sustained foreign fund inflows, stock markets opening with gains and the dollar weakening against major currencies overseas also supported the domestic unit, forex dealers said.
The dollar was weak following the US Treasury Secretary hailing a 'weak dollar' at the World Economic Forum in Davos.
Yesterday, the rupee had strengthened by 9 paise to close at a new one-week high 63.69.