FIRST TRADE: Sensex Nifty muted; Asian Paints, Dr Reddy's, HDFC Bank and BPCL down over 1%

Stock market today: Domestic benchmark indices Sensex and Nifty were subdued in the opening deals on Thursday, February 22, amid selling in prominent names such as HDFC Bank, Dr. Reddy's, and BPCL, among others.

Last seen, both indices were down 0.14 per cent. The 30-scrip barometer traded 110.49 points lower at 72,522.6, while the NSE Nifty was down 30.4 points to 22,024.65. 

"The underlying strength of the ongoing market rally is getting widely acknowledged. This explains the FII buying, though marginal, yesterday when the US 10-year bond yield was around 4.3 percent. DIIs have been smart to buy continuously when the FIIs have been selling. So, for DIIs, there is room to book some profits, which they did yesterday. In the tug-of-war between FIIs and DIIs in recent years, DIIs have been the clear winners. So, watch out for the DII action," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr Vijayakumar added that an important trend now is the huge delivery-based buying in private banks, which are even now attractively valued in this market with elevated valuations. Switching from overvalued mid- and small-caps to large private banks would be a smart move.

Meanwhile, in the broader market, Nifty Mid Cap 100 and Small Cap 100 traded in the green. Nifty Bank traded 0.10 per cent lower at 46,970.8. 

BUZZING STOCKS

MTAR Technologies and Mishra Dhatu Nigam shares traded in positive territory after the Cabinet amended the Foreign Direct Investment policy in the space sector.

NBCC (India) shares were up over 2 per cent after the company got approval to take over the Amrapali project worth Rs 10,000 crore.

South Indian Bank shares were up over 1 per cent as the company will issue 52.31 crore shares through Right Issue.

Home First Finance shares were up over 2 per cent after insurance regulator IRDAI granted a corporate agency licence (composite) to the company. 

Prataap Snacks shares were up over 8 per cent after reports suggested ITC could buy a 47 per cent stake in Pratap Snacks. 

Grauer & Weil shares were up over 16 per cent as its board will consider the issuance of bonus shares on February 26. 

GLOBAL MARKETS

Japan’s Nikkei 225 share index surged briefly to an all-time high on Thursday, bypassing its previous record set in December 1989. Elsewhere in Asia, shares were mixed. 

On Wednesday, stocks ended mostly higher on Wall Street after a listless day of trading, with big technology stocks again acting as a heavy weight on the market. 

(With inputs from agencies.) 

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