FIRST TRADE: Indices muted; Sensex down 68 pts, Nifty below 22,100 amid weakness in global stocks

Stock market today: Domestic equity indices Sensex and Nifty50 opened subdued on Tuesday, January 16, tracking Asian peers ahead of key economic data from China after a recent rally to record highs. Last seen, both indices were down 0.22 per cent. The S&P BSE Sensex slipped 157.77 points to 73,170.17, and the NSE Nifty declined 48.9 points to 22,048.55.

"Nifty is now up three times from the COVID low of 7511 in March 2020. This is an indication of a strong bull market, and it has a long way to go. But the rally from now on will not be smooth, and sharp corrections are likely since valuations are high. What are the likely triggers for a correction? More often than not, unexpected events cause corrections," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Dr. Vijayakumar added that geopolitical developments have the potential to trigger corrections. But recent geopolitical events like the Israel-Gaza war didn’t impact crude prices or markets. Similarly, the skirmishes going on in the Red Sea may also pass without hurting the markets. But there can be a near-term concern that the conflict may widen. So watch out for the events in the Red Sea. Large caps in banking, IT, and RIL are likely to remain resilient even in a downturn. As a measure of abundant caution, investors may consider booking some profits and moving the money to fixed income, where the returns are attractive.

Meanwhile, the Nifty Mid Cap 100 and Small Cap 100 opened in positive territory. High-beta Nifty Bank was down 0.13 per cent at 48,096.5.

BUZZING STOCKS

Capri Global Capital shares were over 12 per cent after the company obtained the composite corporate agency licence from the IRDAI in December.

Aster DM Healthcare shares were up over 9 per cent as the stake sale of its Gulf Cooperation Council (GCC) business to Alpha GCC Holdings nears completion.

PNC Infra shares were up over 4 per cent after the company announced the sale of 12 Road Assets Highways Infrastructure Trust.

IRB Infra shares were up over 1 per cent after Ganga Expressway Project SPV, an associate of the company, allotted non-convertible debentures (NCD) aggregating to Rs 520 crore to the company and the GIC affiliate.

Conversely, Angel One shares were down over 8 per cent a day after the company posted a mixed performance.

GLOBAL MARKETS

Asian shares dropped to a one-month low, US stock futures fell, and the dollar rose on Tuesday as hawkish remarks from central bankers tempered expectations for interest rate cuts and traders waited to hear from the Fed's influential Christopher Waller.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 1 per cent to its lowest since mid-December. Japan's Nikkei (.N225) looked set to snap a sharp six-session winning streak with a 0.7 per cent dip away from Monday's 34-year high.

(With inputs from agencies.)

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