FIRST TRADE: Sensex, Nifty muted amid broad based-selling

Stock market today: Domestic equity indices Sensex and Nifty opened a little changed on Monday, March 18, amid selling in almost all the counters. Besides, investors were cautious amid subdued Asian peers ahead of key central bank policy decisions due this week. 

Last seen, the S&P BSE Sensex was down 157 points, or 0.20 per cent, at 72,501.14, and the NSE Nifty was down 0.27 per cent, or 55.5 points, at 21,967.85. 

"The week ahead is likely to be highly volatile. Many events, like the Fed meeting outcome on Wednesday, the spike in the US 10-year bond yield to 4.3 per cent, and the possible Sebi directives based on the stress tests in mid- and small-cap schemes, will influence the market in the near term," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. 

Dr. Vijayakumar added that even though no rate action is expected at the Fed meeting, the outcome will be closely watched. If the Fed message has a slightly hawkish tone in response to the recent stubborn inflation trend, that would be negative for the mother market and consequently for other markets too. The spike in US 10-year bond yields to 4.3 per cent is negative for foreign portfolio flows. 

Further, Dr. Vijayakumar said concern regarding the elevated valuations in the mid and small caps continues despite the stability witnessed in these segments last Friday. Investors may adopt a wait-and-watch strategy and buy large caps in capital goods, banking, telecom, and automobiles on dips.

Meanwhile, Nifty Mid Cap 100 and Small Cap 100 traded over 0.30 per cent lower. High-beta Nifty Bank slipped 0.29 per cent at 46,458.95.

BUZZING STOCKS

Solar Rooftop-related companies such as TataPower, Waree Renewable, Borosil Renewable, Sterling & Wilson Renewable, and Websol Energy shares rose in trade after PM Modi said more than one crore households have already registered under the rooftop solar scheme 'PM-Surya Ghar: Muft Bijli Yojana'. 

Balrampur Chini shares were up over 1 per cent after the company signed an agreement for its PLA-bioplastics manufacturing facility. 

Anup Engineering shares were up over 11 per cent after its board announced plans to consider bonus shares in a meeting on March 20.

RailTel Corporation of India shares were up nearly 2 per cent after the company received a Rs 131 crore work order from the Bihar Educational Project Council.

Conversely, Oil India, RIL, and MRPL shares traded in red after the government increased the windfall tax on crude petroleum by Rs 300/tonne.

Coforge shares were down over 4 per cent after its board approved raising Rs 3,200 crore through QIP.

GLOBAL MARKETS 

Asian shares idled and the dollar held firm on Monday as investors looked to navigate a minefield of central bank meetings this week that could see the end of free money in Japan and perhaps a slower glide path for US rate cuts.

Central banks in the United States, Japan, the UK, Sweden, Switzerland, Australia, Brazil, and Mexico all meet, and while most are expected to hold steady, there is plenty of scope for surprises.

(With inputs from agencies.)

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