FIRST TRADE: Sensex, Nifty open muted amid a drop in global stocks; ONGC, BPCL down over 1%

Stock market today: Domestic equity indices Sensex and Nifty opened on a muted note on Wednesday, January 10, following a drop in Asian peers, while investors await key inflation readings from India and the US to assess the interest rate outlook. At the time of filing this report, both indices traded flat with a negative bias: the S&P BSE Sensex was down 50.38 points at 71,335.83 and the NSE Nifty slipped 21.55 points at 21,523,3.

"The market is moving up and down without a directional trend. Up moves are countered by selling, and down moves are responded to by buying. A trend might emerge in the coming days in response to Q3 results. There is an important dichotomy in the market that has implications for investors. Segments like defence and railways have run up too fast based on expectations triggered by order inflows. It will take time for these orders to be executed and reflect on the bottom lines," said Dr. V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

On the other hand, the expert added that there is value in segments like banking, particularly in high-quality private sector majors. But this value is not being reflected in the price. This is a short-term aberration that will correct in the medium to long term.

Regarding IT, he said that the management commentary will be more important than the results, which will be tepid.

Meanwhile, the Nifty Mid Cap 100 was also flat, whereas the Nifty Small Cap 100 traded in positive territory. High-beta Nifty Bank was down 0.25 per cent at 47,125.15.

BUZZING STOCKS

Cochin Shipyard shares were over 7 per cent on its record date for stock splits.

Polycab India shares were up over 2 per cent after the company denied reports of tax evasion.

Shyam Metalics and Energy shares were up nearly 2 per cent a day after the company raised Rs 1,385 crore through qualified institutional placement (QIP).

Choice International shares were up over 2 per cent after the company announced that it would deliberate on results as well as bonus share issuance at its board meeting scheduled for January 15.

Indus Towers shares were up over 2 per cent after BofA Securities double-upgraded the stock to a buy with a raised target price of Rs 270.

Conversely, KIOCL shares were down 2 per cent after the company temporarily suspended operations at the Mangalore-based pellet plant unit with effect from January 9, 2024.

Colgate-Palmolive shares were down over 1 per cent after the company received a Goods and Services Tax (GST) notice.

Delta Corp shares were down over 2 per cent after the company posted weak December quarter performance.

Vedanta shares were down over 2 per cent after Moody's downgraded the rating of the parent company from Caa2 to Caa3 given the liquidity issues at Vedanta Resources.

Power Finance Corporation shares were down over 1 per cent despite the company obtaining a NoC from the RBI for the establishment of a finance company.

(With inputs from agencies.)

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