Markets in a volatile session; Sensex near 57,800, Nifty 50 below 17,300; Banking stocks underperform

17 Feb 2022 , 10:24 AM

After making a higher opening, Indian markets entered into a volatile session on Thursday’s early deals with Sensex and Nifty 50 trading lower. Domestic equities tracked mixed global cues as investors observed development between Russia-Ukraine conflict and also reacted to US Federal Reserve’s minutes that hinted for US rates will be hiked if inflation does not calm down.

Banking stocks were the major bears of today after the biggest loan fraud of nearly Rs23,000cr of ABG Shipyard against a consortium of banks, rocked the sector. In the latest development, the ED has filed a money laundering case against ABG Shipyard, its former promoters and others involved in the loan case. BSE Bankex slipped more than 445 points currently.

Auto and oil & gas stocks witnessed substantial gains, while power and utilities emerged as top bulls in percentage terms. Auto and Oil & Gas index on BSE surged by 145 points, while Power and Utilities index jumped by 1.7% and 1.4%.

At around 10.23 am, Sensex was trading at 57,802.79 down by 193.89 points or 0.33%. The index has touched an intraday low of 57,748.47.

Nifty 50 performed at 17,282.25 lower by 39.95 points or 0.23%. The benchmark touched the day’s low of 17,266.70.

Power Grid, Tech Mahindra, HDFC, M&M and RIL were the top five bulls on BSE.

Axis Bank, IndusInd Bank, ICICI Bank, Ultratech Cement, Bharti Airtel, SBI, HDFC Bank, Bajaj Finance, Bajaj Finserv and Sun Pharma were among major bears on BSE.

On the global front, Asian markets were mixed as they digest the ongoing news flow on Ukraine/Russia & the Federal Reserve action expected in early March. Japanese ‘Nikkei’ and Hong Kong’s Hang Seng dived nearly 270 points and 155 points, while South Korean and Taiwan indices traded in the green. Shanghai Composite and ASX held steady with marginal gains. Chinese stocks should see the mixed reaction as they offer good opportunities as contrarian plays when global geopolitical uncertainty persists. 

Overnight, on Wall Street, US markets see a volatile session which sees Dow Jones recover from lows of 340 to close down 40 while Nasdaq recovers from low 220 to close down 15. Bond yields close near 2.02% while oil sees profit booking to close lower after seeing fresh highs on Ukraine news unrest.

Federal Reserve minutes indicate gradual rate increases to control inflation which sees markets rebound from lows.