FIRST TRADE: Sensex slips over 100 pts; Nifty below 21,700; Eicher Motors down 1%

Stock market today: Domestic equity indices Sensex and Nifty began Tuesday's session with minor losses amid selling pressure in financial and IT shares though gains in oil & gas counters kept the downside in check. Dalal Street succumbed to selling pressure in the fag-end of the previous session which saw the indices scaling fresh record highs earlier in the day. 

The Sensex dropped as much as 202.8 points, or 0.3 per cent, to 72,069.2 within the first few minutes of trade while the Nifty50 slipped to as low as 21,699, down 42.9 points or 0.2 per cent from its previous close. At the last count, the 30-scrip gauge was down 108.3 points or 0.2 per cent at 72,163.7 while the Nifty was down 22.2 points or 0.1 per cent at 21,719.7.

"The 1000 points rally in the Nifty in the last month has imparted momentum to the market. Retail investors encouraged by the excellent returns of 2023 have turned exuberant and are chasing stocks, unmindful of the high valuations, particularly in the mid and small-cap segments. Investors should not fall into the trap of ‘recency bias’ and chase low-grade stocks in the broader market," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. Vijayakumar added declining dollar and US bond yields provide a favourable global context for equities. FII inflows in 2024 are likely to be huge and have the potential to lift high-quality large-caps, particularly in segments like banking where valuations are fair.

Dr. Vijayakumar warns investors to keep an eye on the spike in the volatility index VIX to 14.5 which indicates that high volatility is around the corner. Yesterday’s sell-off in the last 30 minutes is a warning that there can be bouts of big selling at higher levels.

Broader indices Nifty Midcap 100 and Smallcap 100 held on to the green in early trade, with gains of 0.2 per cent and 0.5 per cent, respectively.

The Nifty Bank was down 0.2 per cent at 48,116.2.

Globally, a majority of main markets remained shut on account of New Year holidays.   

BUZZING STOCKS

Allcargo Logistics shares were up over 14 per cent on BSE as the stock traded ex-date. 

Lupin shares were up over 4 per cent after Nomura upgraded its target on the stock.

G R Infraprojects shares were up over 1 per cent after the company emerged as a successful bidder for the establishment of a Transmission system for the Evacuation of Power from RE Projects in Rajgarh (1000 MW) SEZ in Madhya Pradesh‐Phase II.

Dhanlaxmi Bank shares were up over 4 per cent after the bank released its Q3 business update.

Kernex Microsystems shares hit the upper circuit of 5 per cent on BSE after its joint venture i.e., VRRC-KERNEX-CE-RVR JV bags an order of Rs. 109.465 crore from South-Central Railway.

BHEL shares were up over 1 per cent after multiple block deals. 

Conversely, APL Apollo Tubes shares were down nearly 2 per cent after the company released its Q3 business update. 

Eicher Motors was down over 1 per cent after the company logged weak sales in the month ended December with Royal Enfield sales at 63,387 units.

GLOBAL MARKETS 

Asian shares started the first trading day of the New Year on a steady footing on Tuesday, as investors returning after a holiday lull looked ahead to fresh trading catalysts from key economic releases later in the week.

Risk appetite was strong after global shares ended 2023 with their biggest annual rise in four years, driven by the prospect that major central banks globally could begin easing rates this year in a major boost for consumers and businesses shackled by high borrowing costs.

(With inputs from agencies.) 

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