Markets trade bearish; Sensex near 57,100, Nifty 50 below 17,100; FMCG, realty drag while metals gain

22 Mar 2022 , 09:46 AM

Indian markets log lacklustre demand during Tuesday’s early bells, however, the benchmarks Sensex and Nifty 50 pared their gains and were trading on a volatile note. The markets condition looks volatile for the day. In the opening bell, the indices reacted to the petrol-diesel price hike after a gap of over 4-months in India and increasing brent crude oil prices globally as supply risk grows from Russia-Ukraine war.

However, the markets erased early gains as investors focus shifts on mixed global markets. Although, oil & gas, metal stocks limited the downside to trade higher while banking, auto, FMCG, realty stocks logged profit booking today.

At around 9:45 AM, Sensex was trading at 57,133.21 up by 159.28 points or 0.28%. The index has touched an intraday high and low of 57,340.42 and 57,052.09.

Nifty 50 traded at 17,083.85 lower by 33.75 points or 0.20%. The index has touched an intraday high and low of 17,143.15 and 17,062.70.

Top bulls on NSE- ONGC (+4.4%), IOC (+3%), BPCL, Tata Steel and Hindalco advanced over 1.5% each.

Top bears on NSE were – Hindustan Unilever (-2.5%), Asian Paints, Ultra Cements, Nestle India and Tata Consumers dipper more than 1.5% each.

The Central Government raised the petrol- diesel price by 80 paise per litre after a gap of over 4-months amid rising crude oil prices globally. Further, the domestic LPG cylinder prices have been also hiked by over Rs50 in Delhi, Mumbai and other cities from today.

However, amid the gloom of uncertainties over Russia-Ukraine war and inflationary pressure, RBI Governor Shaktikanta Das has assured that India will be able to maintain stability of Indian rupee and will comfortably placed to deal with any effect of war. RBI will carry out a three-day meeting to discuss various factors before announcing the monetary policy outcome next month.

On the global front, US markets see profit booking on Monday after the best week in over 2 years as higher bond yields & spike in crude see Dow Jones fall 200 points. Nasdaq falls 55 points. Crude oil prices rise almost 6% with bond yields hitting 3 year highs @ 2.30%.

Asian markets opened strongly in the green led by the Japanese ‘Nikkei’ which traded well over 400 points in early trade as investors focussed on reopening trade rather than short term worries over geopolitics. Hong Kong to reopen travel from April 1st which is the biggest sources of earning for the economy & which should bode well for the region.