FIRST TRADE: Sensex slips 200 pts; Nifty below 21,450; JSW Steel down over 3%

Stock market today: Domestic equity indices Sensex and Nifty 50 opened in negative territory on Monday, December 18, amid profit booking after an eventful last week. Globally, Asian markets were subdued ahead of Japan's monetary policy decision on Tuesday.

Last seen, the S&P BSE Sensex was down 208.37 points, or 0.29 per cent, at 71,275.38, and the NSE Nifty was down 61.4 points, or 0.29 per cent, at 21,395.25.

"During the last two weeks, the Nifty is up by 6 per cent, Bank Nifty is up by 7.4 per cent and the Nifty IT is up by around 11 per cent. Since there is huge delivery-based buying in these segments, they have the potential to remain resilient," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Further, an important point from recent market experience is that in the tug of war between FIIs and DIIs, the latter have been trumping the former consistently by buying from them when they sell and selling to them the very same stocks that they sold at much higher prices, as the expert pointed out.

Dr. Vijayakumar believes global and domestic factors, except valuations, are favourable for the market. It makes sense to remain invested, particularly in large caps. Some profit bookings can be considered in mid- and small-caps where valuations are very high, Dr. VK Vijayakumar added.

Meanwhile, the Nifty Mid Cap 100 and Small Cap 100 opened in green. On the other hand, high-beta Nifth Bank was down 0.16 per cent at 48,068.5.

BUZZING STOCKS

Sugar stocks were up between over 7 per cent and over 4 per cent on the BSE after the government opted to permit the diversion of cane juice and B-heavy molasses for ethanol production.

Mazagon Dock shares were up over 3 per cent on the BSE after the company signed individual contracts with a European client for the construction of three units.

Vedanta shares were over 2 per cent on BSE as the company's board will consider a second interim dividend on Monday, December 18.

Sandur Manganese shares edged over 2 per cent higher as the company's board is slated to consider the issuance of bonus shares on Monday, December 18. 

Zydus Lifesciences shares were up over 3 per cent after the pharma company received approval from the USFDA to initiate a Phase II clinical trial of ZYIL1 in patients with Parkinson's disease.

Landmark Cars shares were up over 6 per cent after the company, in partnership with Mercedes-Benz, forayed into the South Indian market.

Conversely, Orient Green Power shares were down 1 per cent despite its board approving an increase in the size of the proposed fundraising.

Solar Industries shares traded over 4 per cent lower after a blast at the company's Nagpur plant building killed nine people.

Gandhar Oil shares were down over 6 per cent after the company posted a weak Q2.

GLOBAL MARKETS

Asia stocks got off to a cautious start on Monday in a week where Japan's central bank might edge further away from its uber-easy policies, while a key reading on US inflation is expected to underpin market pricing of interest rate cuts there.

The Bank of Japan (BOJ) meets on Tuesday amid much chatter that it is considering how and when to move away from negative interest rates.

(With agency inputs.) 

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