FIRST TRADE: Sensex slips over 200 pts, Nifty tests 22,150; Asian Paints declines 3.5%

Stock market today: As indicated by Gift Nifty futures, the domestic equity market opened in the red on Monday, February 26, amid selling in technology and financial stocks. Besides, Asian Paints, too, contributed to the indices' fall as the counter saw big downgrades by leading brokerages given the entry of Grasim Industries in the paint sector.

Last seen, the S&P BSE Sensex traded at 72,982.38 levels, down 160 points, or 0.22 per cent, while the NSE's Nifty was trading at 22,178.80, down 33.90 points, or 0.15 per cent. The Sensex was down around 200 points in the opening deals, while the Nifty slipped below the 22,150 level.

"The global market construct continues to be favourable. With the S&P 500 setting newer records, the mother market US has turned very resilient. The Japanese Nikkei at record highs is another pillar of support for global markets," said Dr. V K Vijayakumar, Chief Investment Strategist, at Geojit Financial Services.

Dr Vijayakumar added that even though high valuations in India are a matter of concern, they are unlikely to impact the market much in the near term. Cheap valuations in China are not attracting foreign investors. The market leadership is now with fundamentally strong blue chips like Reliance, ICICI Bank, and Bharti. Sustained buying by DIIs (Rs 21,700 crore in February so far) supported by HNIs and retail investors has completely eclipsed the FII selling. FIIs have lost in this tug-of-war with DIIs since the market has been scaling new highs despite FII selling. 

BUZZING STOCKS

Paytm shares hit a 5 per cent upper circuit after the Reserve Bank of India (RBI) asked NPCI to review Paytm's application to become a third-party app.

Suven Pharmaceuticals shares were up over 1 per cent after preapproval inspections and good manufacturing practice inspections completed by the US FDA at API and formulation facilities in Hyderabad. 

Housing & Urban Development Corporation shares were up over 4 per cent after the government is likely to sell 33.70 lakh shares through the open market (0.17 per cent).

Transformers and Rectifiers shares were up over 2 per cent after the company received an order worth Rs 232 crore from Power Grid Corporation.

Conversely, Rain Industries shares were down over 7 per cent after the company reported very weak results. 

Asian Paints shares were down over 3 per cent after big target cuts by brokerage houses.

GLOBAL MARKETS

Asian shares were taking a breather near seven-month highs on Monday as investors awaited inflation data from the United States, Japan, and Europe that will help refine expectations for future rate moves.

The Federal Reserve's preferred measure of inflation, the core personal consumption expenditures (PCE) price index, is due on Thursday, and forecasts are for a rise of 0.4 per cent.

(With inputs from agencies.)

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