FIRST TRADE: Sensex slips 200 pts Nifty near 22,100 amid selling in IT, oil & gas, financials and autos

Stock market today: The domestic equity indices Sensex and Nifty slipped in the morning deals on Friday, March 15, amid selling in IT, financials, auto, and oil & gas counters, and as investors braced for the results of the stress test of small- and mid-cap mutual funds amid concerns of froth in these segments. On the global front, stocks fell on rising worries over the future rate trajectory in the U.S.

Last seen, the 30-scrip index traded 0.34 per cent or 260.38 points, lower at 72,836 and the NSE Nifty traded 0.39 per cent, or 86.9 points, lower at 22,059.75. 

Meanwhile, Nifty Mid Cap 100 and Small Cap 100 traded in positive territory. Nifty Bank was down 0.10 per cent at 46,742. 

"The rebound in the market yesterday after the Wednesday crash is unlikely to be sustained. Brent crude rising to $85 and the 10-year US bond yield spiking to 4.29 per cent are headwinds for the market. The results of the stress tests conducted by the mid- and small-cap schemes of mutual funds expected today will be keenly watched by the market. If there are clear signs of stress, there can be regulatory action by SEBI, which will impact sentiments in the broader market. Even without stress tests, one thing is clear: the broader market valuations are expensive, and in some pockets, valuations are frothy. This is clearly unsustainable," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. 

Dr. Vijayakumar added that even when prospects for certain sectors are good, valuations have run ahead of fundamentals. Low floating stock in many segments has resulted in prices shooting up. 

Further, Dr. Vijayakumar said high-quality large-caps with good growth prospects are available at fair valuations. Focussing on such stocks would be safer than chasing small-caps with stretched valuations.

BUZZING STOCKS

Paytm shares hit a 5 per cent upper circuit after Paytm's parent company, One97 Communications, gets approval from NPCI.

NHPC shares were down over 1 per cent after the company received a LoI from Gujarat Urja Vikas Nigam Limited.

JSW Energy shares were up over 1 per cent after the company's subsidiary, JSW Neo Energy, got a LoI from Gujarat Urja Vikas Nigam.

L&T Technology Services shares were up over 1 per cent after the company bagged an order from the Cyber Department of the Maharashtra Government worth around Rs 800 crore. 

Newly listed Gopal Snacks shares were up over 7 per cent after QUANT MUTUAL FUND bought 15.05 lakh shares at 374.21 per share.

GLOBAL MARKETS 

Stocks slumped on Friday, tracking tech-led declines on Wall Street overnight after hotter-than-forecast U.S. inflation knocked back bets for how soon and often the Federal Reserve will cut interest rates.

U.S. benchmark bond yields held near the 4.3 per cent level they reached on Thursday for the first time this month, following their biggest jump in three months. The dollar advanced to its highest since March 5 against a basket of major peers.

(With inputs from agencies.)

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