FIRST TRADE: Sensex slips over 75 pts; Nifty below 21,850; UPL down 4%, SBI slips over 1%

Stock market today: Domestic equity indices Sensex and Nifty opened subdued on Monday (February 5) after the blue-chip Nifty 50 jumped to a record high in the previous session, while stronger-than-expected U.S. jobs data dampened hopes of an early Federal Reserve rate cut and weighed on Asian peers. At the time of filing this report, both indices were down over 0.01 per cent. The S&P BSE Sensex traded 14.10 points lower at 72,053.82, while the NSE Nifty was 2.20 points lower at 21,851.6. 

Meanwhile, Nifty Mid Cap 100 and Small Cap 100 opened in the positive territory. High-beta Nifty Bank was down 0.35 per cent at 45,809.05.

"The global construct for equity markets continues to be good with the mother market US doing well aided by a surprisingly strong economy. The latest data on job creation in January has again surprised with the addition of 3,53,000 jobs. There are no signs of the US economy tipping into a mild recession any time soon. This means that the Fed rate cuts expected this year are likely to be back-loaded. This has pushed up the 10-year bond yield again above 4 per cent and the dollar index to 104. This might prompt some selling by FIIs," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. Vijayakumar added that the market momentum is good, supported by strong DII and retail buying. Among the recent results, Tata Motors and Interglobe Aviation stand out and these stocks have more room to go up. RIL is also exhibiting strength.

BUZZING STOCKS

Tata Motors shares were up over 7 per cent after the company posted strong Q3 results.

IndiGo shares were up 4 per cent after the company posted strong Q3 results.

Conversely, Paytm shares hit a 10 per cent lower circuit after Reserve Bank of India (RBI) barred Paytm Payments Bank Ltd from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others, after February 29, 2024.

UPL shares were down over 5 per cent a day after the company posted weak Q3 results.

GLOBAL MARKETS

Asian shares fell on Monday and the dollar climbed after a robust U.S. jobs report dashed any expectations of a near-term interest rate cut from the Federal Reserve, while stocks in China stocks remained on the back foot on weak sentiment.

Oil prices were tentative following fresh strikes in Tehran-aligned factions in Iraq, Syria and Yemen over the last two days by the United States, with rising tension in the Middle East keeping risk appetite in check.

(With inputs from agencies.)

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