Markets trade volatile despite positive global cues; Sensex holds 58,150, Nifty 50 near 17,375; M-;M, HDFC, Dr Reddy's Lab top bulls

16 Feb 2022 , 10:15 AM

Indian markets witnessed a volatile session in the early deals of Wednesday with Sensex and Nifty 50 trading with marginal ups and downs despite positive global cues as Russia-Ukraine tensions eases slightly. Except for capital goods and banking, all other sectoral indices were in the green. However, IT stocks traded broadly flat. While Realty stocks outperformed. The demand for buying was majorly lacklustre as investors opted for a cautious tone.

Investors globally reacted to bond yields that hit 2 years high closing at 2.03% overnight as inflation tailwind rises with Federal Reserve expected to increase rates by 50 basis points in March now almost a certainty. Russia retreats armed forces from the Ukraine borders to avoid a war-like situation.

Asian markets across the board saw short covering/value buying as geopolitical risk subsided. South Korea and Taiwan made big gains as equities saw buying momentum. Also, Chinese stocks are likely to join the rally as the market see relief momentum before the Federal Reserve policy decision in March.

Back at home, at around 10.23 am, Sensex was trading 58,150.71 up by 8.66 points or 0.01%. The index has touched an intraday high and low of 58,467.04 and 57,981.60.

Nifty 50 performed at 17,372.85 higher by 20.40 points or 0.12%. The index has touched an intraday high and low of 17,450 and 17,315.65 respectively.

In broader markets, BSE Midcap and Smallcap kept the bears off the bay with gains of nearly 160 points and 280 points. Sensex Next 50 jumped nearly 350 points.

In terms of sectoral indices, on BSE, the Capital Goods underperformed tumbling 125 points. Bankex was marginally lower as investors observed the risk from nearly Rs22,000cr fraud by ABG Shipyard against 28 banks. Realty and Power index climbed over 1% each.

Bulls on BSE were – M&M, HDFC, Dr Reddy’s Lab, Power Grid, IndusInd Bank, NTPC and Bharti Airtel.

Bears on Sensex were – L&T, Ultratech Cement, SBI, Tata Steel, Wipro and Asian Paint.