Markets trade volatile amid mixed global cues; Auto, metals, oil -; gas rises; IT index under pressure

19 Apr 2022 , 09:43 AM

Indian markets traded flat amid high volatility during opening bells on Tuesday tracking mixed global cues as investors bet cautiously owing to rising treasury yields and the possibility of faster policy tightening by the US Federal Reserve. On domestic front, auto, metal, oil & gas indices soared 1% each to support the broader markets.

Further, again rising Covid cases in the country make investors nervous as Covid fourth wave is around the corner and in last 24 hours as India reported 1,247 fresh cases and 11,860 active cases.

Also, as per the government released data, Wholesale Price Inflation soars 30-year high to 14.6% in 2021-22 on supply chain disruption which is also the cause of worry for investors.

At around 09:45 AM, Sensex was trading at 57,184.49 up by 17.75 points or 0.03%. Meanwhile, Nifty 50 was performing at 17,184.65 higher by 11 points or 0.06%.

Gainers on Nifty were – Coal India soaring by 2% followed by Eicher Motors, BPCL, JSW Steel and Hero MotoCorp surging around 1% each. Other major stocks such as Hindalco, Apollo Hospitals, Bajaj Auto, UPL added marginal gains as well.

However, HDFC, HDFC Bank, Infosys, Dr Reddy’s, HCL Tech were top underperformers on Nifty plunging 1% each.

On the sectoral front, except Nifty IT all the other indices cheered buying sentiments from investors and maintained position in the green territory. Nifty auto, metals and oil & gas rose 1% each with realty, banking and pharma indices are also trading higher. However, IT stocks to remain in focus as major IT companies are set to announce their quarterly earnings.

Also, post strong Q4 result, Mindtree stock is in focus today. Notably, Bengaluru-based Mindtree’s Q4 net profit jumps 49% yoy to Rs473 crore.

On the global front, Asian indices opened mixed with the Japanese ‘Nikkei’ seeing early gains getting sold into to trade flat while South Korea & Taiwan markets trade in the green. Most Asian markets seem grossly oversold even as bond yields hit highs.

Overnight, US markets see another volatile day with Dow Jones seeing intraday gains of over 200 points before closing lower by 30 points. Bond yields hit over 3-year highs to close at 2.85%, which sees pressure on equities.