MARKET LIVE: Sensex, Nifty volatile; telecom stocks rally, Mastek tanks 15%

Markets at 10 AM:

LIVE market updates: After the early morning volatility, the key benchmark indices recouped losses and were trading higher on the back of a strong buying in FMCG and telecom shares.

The BSE Sensex, which touched a low of 61,490, was up 138 points at 61,853.5. The NSE Nifty was up 33 points at 18,452.

Bharti Airtel has surged over 4 per cent to Rs 709 while Vodafone Idea was up 5 per cent. Nestle India, HCL Technologies and SBI were the other major gainers on the Sensex.

Meanwhile, the broader markets were trading with comparatively deeper cuts in trade on Wednesday. The BSE Midcap index had slipped 0.7 per cent, while the Smallcap index has shed 0.64 per cent.

“There is excessive speculation in certain stocks, particularly in the broader market, which have taken some stocks to unjustifiable levels of valuations. PEs in some cases are 100, 150 and even above 200. The high level of speculative froth in many stocks is evident from the abnormal trading volumes and huge volatility in these stocks,” says Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Massive selling (Rs 2,578 crore yesterday) by DIIs indicates that smart money regards markets as overvalued and overheated. The market direction will depend on whether the exuberant retail investors will again rush in to absorb the selling by institutions, he addded.

Among stocks, IRCTC has extended its fall, and was down nearly 18 per cent at Rs 4,410 on the BSE. The stock has shed over 31 per cent (nearly Rs 2,000) in just two trading sessions.

Mastek had tumbled 15 per cent to Rs 2,903 on the BSE in intra-day trade after the company reported muted set of July-September quarter (Q2FY22) numbers. With today’s decline, the stock has corrected 21 per cent from its 52-week high level of Rs 3,666, touched in Tuesday’s intra-day trade. READ MORE

In the currency market, the rupee opened higher at 75.11 per US dollar relative to Monday’s close of 75.34 per $. Currency markets were shut on Tuesday on account of Id-E-Milad.

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(Updated at 09:25 AM)

Opening Trades

LIVE market updates: The benchmark indices opened a quiet note amid positive global cues. The BSE Sensex opened 84 points higher at 61,800, and after touching a high of 61,873, the index soon slipped into the negative zone.

The BSE Sensex was down 164 points at 61,553. The NSE Nifty touched a high of 18,458, but was down 64 points at 18,355.

Among the Sensex 30 stocks, Tata Steel has slipped 1.5 per cent. Asian Paints, Bajaj Finserv, Bajaj Auto, IndusInd Bank and NTPC are the prominent losers.

On the other hand, Nestle India, Larsen & Toubro, HCL Technologies, Infosys and Bajaj Fiannce were up marginally.

In the broader market, IRCTC has hit the 10 per cent lower circuit at Rs 4,830. The stock had crossed the Rs 1 trillion mark yesterday in intraday deals, after it hit a fresh all-time high at Rs 6,393. Mastek and Indian Energy Exchange (IEX) have also tumbled over 10 per cent each.

Elsewhere in Asia, Hang Seng has rallied 1.5 per cent. Australia’s S&P/ASX 200 has advanced 0.7 per cent. Most of the other major markets like the Nikkei, Shanghai Composite, Taiwan Weighted, KOSPI and Straits Times traded on a flat note.

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(Updated at 09:08 AM)

Pre-open Session:

LIVE market updates: The BSE Sensex was quoted 84 points higher at 61,800 in pre-open trades on Wednesday. The NSE Nifty 50 was up 20 points at 18,439.

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(Updated at 08:10 AM)

LIVE market updates: A firm global market setup could resume uptrend in the markets after a day’s blip. At 8.10 AM, SGX Nifty was up 20 points at 18,447.

US equities extended a rally in the overnight session as solid corporate results helped counter concerns stemming from elevated inflation. The Dow Jones Industrial Average rose 0.56 per cent, the S&P 500 gained 0.74 per cent and the Nasdaq Composite added 0.71 per cent.

Consequently, Asian markets followed their US counterparts higher, with Japan’s Topix index rising 0.5 per cent, Australia’s S&P/ASX 200 Index 0.9 per cent and Hang Seng Index 0.7 per cent. Shares in China, however, declined as the focus remains on Beijing’s regulatory curbs and the slowdown in the property sector.