Sensex, Nifty start on choppy note on weak global cues

MUMBAI: Equity benchmark Sensex turned choppy after opening at a record intra-day high of 48,616.66 in opening trade on Wednesday amid weak trend in global equities.

After rising 179 points in early trade, the 30-share BSE index was trading 38.03 points or 0.08 per cent lower at 48,399.75, and the broader NSE Nifty slipped 8.10 points or 0.06 per cent to 14,191.40.

ITC was the top laggard in the Sensex pack, shedding around 1 per cent, followed by Reliance Industries, HUL, HCL Tech, UltraTech Cement and Bajaj Finance.

On the other hand, ONGC, Titan, SBI, ICICI Bank and Bharti Airtel were among the gainers. In the previous session, Sensex ended 260.98 points or 0.54 per cent higher at 48,437.78, while Nifty rose 66.60 points or 0.47 per cent to settle at a new peak of 14,199.50.

Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 986.30 crore on a net basis on Tuesday, according to provisional exchange data.

According to Binod Modi Head-Strategy at Reliance Securities, domestic equities look to be flat at the moment amid mixed cues from Asian markets.

"Announcement of date to begin vaccination drive and India continuing to remain the most resilient in the world in terms of COVID-19 recovery rates should continue to augur well for equities. Additionally, key economic indicators for December 2020 show sustained recovery in the economic activities.

"Considering ongoing economic recovery and persistent weakness in the dollar with soft monetary policies across the world, FPIs flow should continue to remain supportive for Indian equities. 3QFY21 earnings and Union Budget will be crucial for markets in the near term," he said.

US equities ended higher as investors focused on higher fiscal stimulus as Democrats' control in the Senate (as indicated by polls) will open the door for large fiscal stimulus and expansive fiscal policies irrespective of near-term volatility due to higher taxes, he said.

Elsewhere in Asia, bourses in Shanghai, Tokyo, Seoul and Hong Kong were trading on a negative note in mid-session deals.

Meanwhile, the global oil benchmark, Brent crude, was trading 0.56 per cent higher at USD 53.90 per barrel.