Sensex Today: Profit Booking Takes Sensex Down 100; the banks, the metal suffers

NEW DELHI: Blue-chip Indian indices erased early gains to trade lower on Thursday as market participants preferred to post profits rather than continue their buying spree even as Omicron concerns eased fade.

After seeing a steep decline over the past few days, markets are rising at a similar speed as speculative money pours into global recovery trade on waning Omicron fears, an analyst said.

“Domestic markets should continue their gains following the positive global signals. However, some profit booking at higher levels cannot be ruled out due to an overly tight rally. The focus now shifts to macro data, including inflation and industrial production, which will be announced later today,” said Sageraj Bariya, Vice President – ​​Institutional Sales, East India Securities.

How are the bluechips doing
After opening in the green, the benchmarks extended their gains. As of 9:30 a.m., ESB flagship Sensex was down 92 points or 0.16% at 58,558. Benchmark NSE Nifty slipped 26 points or 0.22% at 17,432.

“Crucial support for Nifty50 is at 17,300 while Nifty may face some resistance at 17,650,” said Mohit Nigam, Head – PMS, Hem Securities.

In the pack of 50 Nifty shares, BPCL was the biggest gainer, up 1.78%. UPL, Asian Paints, Britannia Industries, L&T, Reliance Industries, Dr Reddy’s Labs, Infosys and Indian Oil were among the other winners.

Hindalco Industries was the big loser of the pack, down 1.06%. Tata Steel, JSW Steel, Maruti Suzuki, HDFC Bank, TCS, NTPC, SBI, SBI Life Insurance, Tech Mahindra and Axis Bank were among the other losers.

MARKET DYNAMICS

Bond rates jump: Bonds suffered losses as a brighter virus outlook leaves a clearer path to higher rates. Traders’ attention was turned to the release of inflation data on Friday and a Federal Reserve meeting next week for hints on the timing of the hike. Benchmark 10-year Treasury yields were near their highest level since Nov. 29.

Need a booster dose? : On Wednesday, BioNTech and Pfizer said a three-shot course of their COVID-19 vaccine was able to neutralize the Omicron variant in a lab test.

Rate hike sooner than expected: The U.S. Fed will raise rates in the third quarter of next year, earlier than expected a month ago, according to economists in a Reuters poll who mostly said the risk was that a hike would come even sooner.

Larger markets

Broader stock indices were trading higher, outperforming their major counterparts in morning trading. Nifty Smallcap rose 0.70% while Nifty Midcap rose 0.28%. The broadest index on NSE, the Nifty 500, rose 0.34%.

Vodafone Idea, Dr Lal Pathlabs, Sona Comstar, Trident, CanFin Homes and Burger King gained space while KEI Industries, Graphite India, Chambal Fertilisers, Ipca Labs, Torrent Power and Ajanta Pharma were under selling pressure.

Global Markets
MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 0.5% to a two-week high. Japan’s Nikkei remained stable, having gained 3.5% in the previous two sessions.

S&P 500 futures were flat after a 0.3% rise in the cash index overnight took it within 1% of a new record high.