FIRST TRADE: Sensex, Nifty muted; pharma and IT shares rally

Stock market today: The domestic equity market on Monday (February 12) opened muted ahead of a key inflation reading. The Reserve Bank of India indicated last week that there may not be rate cuts soon, spurring losses in stocks. Last seen, both indices were up over 0.05 per cent. The S&P BSE Sensex was up 79.84 points at 71,675.33, and the NSE Nifty was up 12.35 points at 21,794.85.

"With the S&P 500 closing above 5000 for the first time, support from the mother market augurs well for the bulls. But the bears are likely to take cues from the rising US bond yields (10-year yield is at 4.17 per cent) which normally triggers big selling from FIIs. So the tug of war between the bulls and the bears is likely to continue," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. Vijayakumar added that the fact that the markets are resilient even after the initial enthusiasm for early rate cuts in 2024, both in the US and India, has moderated is an indication of the underlying strength of the market. Apart from positive economic cues, a major factor supporting the market is the sustained flows to the market through mutual funds. This can trigger buying on dips, and the high market valuations are likely to be sustained for some time. However, the frothy valuations of the broader market are a matter of concern. From a long-term perspective, safety is in large caps.

Meanwhile, the Nifty Mid Cap 100 traded 0.31 per cent higher, while the Small Cap 100 traded flat with a negative bias. Nifty Bank was subdued with a negative bias at 45,8608.

BUZZING STOCKS

Dr. Reddy's Laboratories shares were up over 2 per cent after the company received the Establishment Inspection Report (EIR).

Divi's Laboratories shares were up 3 per cent after the company posted its Q3 results.

Honasa Consumer, the parent company of Mamaearth shares was up nearly 4 per cent after the company reported good results.

Conversely, Hero MotoCorp shares lost over 3 per cent after the company posted its Q3 results.

Indian Railway Finance Corporation shares were down over 4 per cent after the company posted mixed Q3 results.

SJVN shares were down over 10 per cent after the company posted weak Q3 results.

The New India Assurance shares were down over 2 per cent after the company posted mixed Q3 numbers.

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