FIRST TRADE: Nifty near 22,350; Sensex up over 100 pts; ITC down over 2%

Stock market today: The domestic equity market on Tuesday, March 12, traded higher, tracking gains in broader Asian peers, while investors await domestic and US inflation prints. Last seen, both indices were up over 0.10 per cent; the 30-scrip barometer traded 96.12 points higher at 73,598.76, and the NSE Nifty was up 31.2 points at 22,363.85. 

Meanwhile, in the broader market, the Nifty Mid Cap 100 traded flat with a positive bias, whereas the Small Cap 100 index traded lower. Nifty Bank was flat with a negative bias at 47,307.65. 

"The dominant near-term trend in the market now is the correction in the broader market, particularly the small caps. The small cap index is 7.8 per cent down from its peak, and this correction is likely to continue since the valuations are even now excessive. The regulator SEBI has sent a clear message about the frothy valuations in the small-cap segment and, therefore, regulatory actions are likely, going forward. There can be redemptions from small-cap funds adding to the downside," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. Vijayakumar added quality large caps will bounce back after a correction, but small caps are unlikely to recover in the near term. PSE stocks that have run up too fast are also likely to face selling pressure.

BUZZING STOCKS

Aditya Birla Capital shares were up over 3 per cent after its board approved the merger of subsidiary Aditya Birla Finance Ltd into the company. 

NLC India shares were down over 2 per cent one day after its OFS opened. 

Conversely, ITC shares were down 2 per cent after reports suggested British American Tobacco (BAT) would sell a stake in the company.

KFin Technologies shares were down over 5 per cent after reports about Kotak Mahindra Bank selling a 2 per cent stake.

GLOBAL MARKETS 

Asian stocks nudged higher on Tuesday ahead of the influential US inflation report, while Japanese shares fell and the yen firmed on rising expectations that the Bank of Japan may be ready to exit ultra-easy-monetary policy as early as next week.

Gold was hovering just below its record peak touched last week, and the dollar was broadly steady as traders looked for the U.S. consumer price index report later in the day to gauge when the Federal Reserve will likely start its rate-cutting cycle.

(With inputs from agencies.) 

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