Sensex And Nifty Maginally Rise Amid Broad-Based Gains

The markets have opened marginally in the green post the losses witnessed in the previous session. The BSE Sensex has gained 78 points or 0.1 per cent at 41,218 and the Nifty has added 12 points at 12,131. The BSE Mid cap index has added 12 points at 15,771 and the smallcap index has added 65 points at 14,915.

All the NSE sectoral indices are trading in the green, with the sole exception of the metal index. Financial stocks are hogging the limelight this morning post the correction in the previous session; HDFC, HDFC Bank, SBI and ICICI Bank have added 0.5 per cent to 1 per cent each.

Analysts say the markets are likely to remain volatile until the government presents the Union Budget on February 1, when it may also unveil more measures to lift growth.

In the overnight trade, US stocks had suffered their worst day in over three months amidst worries about the economic impact of containing the deadly coronavirus. The Dow Jones fell 453 points or 1.57 per cent to 28,535, the S&P 500 lost 51 points or 1.5 per cent to 3,243 and the Nasdaq Composite dropped 175 points or 1.8 per cent to 9,139.

Nearer home, the Asian shares are trading mixed this morning. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.8 per cent in early Asian trading on Tuesday. Japan's Nikkei was down 0.9 per cent and South Korea's Kospi index skidded 3.4 per cent. The SET Composite was however trading marginally in the green. The benchmark indices in China, Hing Kong and Taiwan are shut on account of the lunar holidays.

Oil prices slumped a further 2 per cent to multi-month lows on Monday as the rising number of cases of the new China virus and city lockdowns in major Chinese cities deepened concerns about demand for crude. Oil futures slipped on Tuesday, extending losses into a sixth session as the spread of the virus raised concerns about a hit to economic growth and slower oil demand. Brent crude was down 15 cents or 0.3 per cent to $59.17, after touching a three-month low at $58.50 on Monday.

On the news front, the US Fed will start its two-day monetary policy meeting later in the day. The US central bank is widely expected to expected to deliberate upon the balance sheet as its bond portfolio is swelling again at a rapid pace.

Back home, investors will track news flows surrounding the spread and impact of coronavirus, which has already claimed more than 100 lives in China thus far. They will also react to the corporate earnings and continuing build-up of budget expectations.

Maruti Suzuki, Mahindra & Mahindra Financial Services, Mastek and Cummins India are some major companies to announce their December quarter results later in the day.

Financial stocks are among the major gainers on the Sensex. HDFC, SBI, Axis Bank and HDFC Bank have strengthened between 0.5 per cent to 2 per cent each. M&M, Hero Motocorp and Sun Pharma are the other significant gainers on the Sensex.

On the other hand, Power Grid, Tata Steel, Bharti Airtel and NTPC have lost between 1.2 per cent and 1.8 per cent each to emerge as the top losers on the BSE.

The market breadth is strong. Out of 17,37 stocks traded on the BSE, there are 994 advancing stocks as against 668 declines.

The Sensex had witnessed the second biggest fall in January on Monday, plunging 458 points to 41,155 and the Nifty 50 had dived 129 points to 12,119.