Markets witness volatility; IT, Metals underperform; ONGC, Infosys drag; Asian Paints shines ahead of Q4

10 May 2022 , 09:27 AM

Indian markets recovered early losses of Monday and were opened on a positive note on Tuesday amid weak global cues. However, Sensex and Nifty are in for a volatile session as investors are worried on inflation and the impact of Covid-19 on global growth. Also, weak Asian counterparts limit buying sentiments.

At around 9:45 AM, Sensex was performing at 54,456.96 down by 13.71 points or 0.03%. Nifty 50 was trading at 16,333.20 higher by 31.35  points or 0.19%.

In the early trading hours, around 09:16 AM, Sensex was trading at 54,578.65 up by 107.98  points or 0.20%. Nifty 50 up by 29.50 points or 0.18% and was trading at 16,331.40.

Metal and IT stocks were top laggards, while the Consumer Durables also witnessed profit booking. Oil & gas further weighed down on the benchmarks amid sea saw battle of crude oil prices globally.

Auto and FMCG stocks were in a rally with the indexes on NSE surging over 1%.

Nifty 50 gainers were – Asian Paints soaring 2.5% followed by Ultra Cements advancing 2.2%. Hindustan Unilever and Britannia followed with 1.5% upside each. Maruti Suzuki climbed 1.3%.

Nifty 50 underperformers were – ONGC nosediving over 2.5%, while Hindalco following with a 1.7% downside. Stocks like Infosys, JSW Steel and Cipla contracted nearly 1% each.

Companies that will announce their March 2022 quarterly result and will be in focus on exchanges are – Asian Paints, Cipla, Vodafone Idea, Gujarat Gas, Ajanta Pharma, Cera Sanitaryware, Chalet Hotels, Chemplast Sanmar, Dishman Carbogen Amcis, Elantas Beck India, Electrosteel Castings, Kansai Nerolac Paints, Max Financial Services, Mahanagar Gas, MRF, Polycab India, Neuland Laboratories, Orient Electric, Reliance Capital, R Systems International, Shemaroo Entertainment, Tajgvk Hotels & Resorts, TD Power Systems, Torrent Power, Venky’s (India), and Welspun India.

Further, on Monday the Indian rupee breached the 77-level for the first time to hit an all-time low of 77.53 against the US dollar, raising concerns that a new front has opened up for the economy in the battle against inflation which also swayed investors sentiments.

On the global front, Dow Jones fell over 600 points while Nasdaq now in free-fall mode falls over 4%. Also, Oil prices fall sharply as China lockdown sees demand destruction with high prices seeing a fall in consumption. Bond yields also fall to 3% as markets weary of growth.

However, Asian indices opened in the red led by the Japanese ‘Nikkei’ which was trading lower by 450 points as markets turned extreme caution on growth with near term capitulation evident in US stocks.