BEL Top Gainer Defense Stock: A weak trend is being seen in the Indian stock market in early trading on Friday 26th December. Due to weak signals from global markets, both Sensex and Nifty are trading in the red.
However, amid this market decline, strong buying is being seen in defense sector shares. Investors’ eyes are on the important meeting of the Defense Acquisition Council to be held today, due to which there is volatility in the market.
Market’s sluggish start and sectoral updates
Domestic stock markets opened with a decline today where Sensex fell by about 150 points and was seen trading at the level of 85,225. At the same time, a weakness of 40 points was recorded in Nifty and it came to the level of 26,121. There was a slight decline of 50 points in Bank Nifty.
Talking about sectoral index, there is pressure in IT, NBFC and private bank sectors. However, there is a rise in defense stocks in which Bharat Electronics Limited (BEL) has emerged as today’s top gainer. Apart from this, growth is also being seen in the shares of Coal India and Adani Enterprises.
Global signals and condition of US market
Due to the Christmas holidays, signals from global markets are quite limited and sluggish. However, before the holiday, US markets hit record highs with the S&P 500 and Dow Jones closing at their life highs.
Volume is expected to be low in Asian markets today due to which the trading scope in Indian markets may also remain limited. Rupee also opened 6 paise weaker at 89.85 against the dollar today which is affecting the market sentiment.
Big news of FII-DII flow and defense sector
The selling trend by foreign institutional investors (FIIs) is still continuing who have sold shares worth Rs 1,721 crore in the cash segment. In contrast, domestic institutional investors (DIIs) continued their buying and invested around Rs 2,400 crore.
A meeting of the Defense Acquisition Council (DAC) is going to be held today in which defense deals worth up to Rs 80 thousand crore can be approved. Due to this news, there is a bullish trend in defense stocks like BEL and BDL.
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Record rise in gold and silver and pressure on IndusInd Bank
There is historic movement in the commodity market today where silver has reached an all-time high of Rs 2.24 lakh and gold has reached an all-time high of Rs 1.38 lakh. On the other hand, in the banking sector, the news is not good for IndusInd Bank as SFIO has started investigating the alleged irregularities in the derivative accounts of the bank.
After this news, volatility in bank shares is likely to increase. There has been a slight softening in the prices of crude oil, which is a sign of relief as Brent crude is near $62 per barrel.
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