Domestic equity benchmarks BSE Sensex and NSE Nifty started on a volatile note Wednesday as investors turned jittery on weak domestic and global cues amid continued foreign fund outflow. After swinging nearly 200 points in the first half hour of the session, the 30-share index was trading 29.49 points, or 0.07 per cent, higher at 39,845.97 at 0945 hours. Similarly, the broader Nifty was quoting 6.60 points, or 0.05 per cent, up at 11,916.90.
In the previous session, the BSE gauge settled 129.98 points, or 0.33 per cent, higher at 39,816.48, and the Nifty rose 44.70 points, or 0.38 per cent, to finish at 11,910.30.
On a net basis, foreign institutional investors sold equities worth Rs 512 crore, while domestic institutional investors purchased shares to the tune of Rs 141.09 crore, provisional data available with stock exchanges showed Tuesday.
Top gainers in the Sensex pack in early trade included Yes Bank, IndusInd Bank, Asian Paints, M&M, Axis Bank, NTPC and PowerGrid, rising up to 2.23 per cent.
On the other hand, Vedanta, ONGC, HDFC, Tata Steel, ITC, TCS and HUL fell up to 1.63 per cent.
According to traders, investors were cautious ahead of the Union Budget, scheduled for Friday.
Domestic investors followed cues from other Asian equities which remained volatile amid fears of a global economic slowdown amid weakening global manufacturing growth, they said.
Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading on a negative note in their respective early sessions. Bourses on Wall Street ended higher on Tuesday.
Fall in GST collections, slow progress of monsoon too weighed on market mood here, traders added.
On the currency front, the Indian rupee appreciated 13 paise to 68.81 against the US dollar.
Meanwhile, the global oil benchmark Brent crude futures were trading 0.34 per cent higher at 62.61 per barrel, after the Opec bloc of oil producers on Tuesday formally signed a new charter of cooperation with major allies including Russia, one day after thrashing out the document at a marathon meeting.
Rupee rises 16 paise to 68.79 vs USD in early trade
The rupee appreciated by 16 paise to 68.79 against the US dollar in opening trade Wednesday, driven by positive opening in domestic equities and weakening of the greenback in overseas markets.
The rupee opened strong at 68.83 at the interbank forex market then gained further ground to touch 68.79 per dollar, displaying gains of 16 paise over its previous close.
On Tuesday, rupee had settled at 68.95 against the US dollar.
“Dollar might be under pressure as the growth in the manufacturing sector slowed down to near a 4-year low,” Angel Broking said in a research note Wednesday and added that rupee is expected to “move sideways”.
Forex dealers said, selling of the American currency by exporters supported the rupee.
However, rising crude oil prices and foreign fund outflows weighed on the domestic currency.
Brent crude, the global benchmark, was trading at 62.61 per barrel higher by 0.34 per cent.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 512 crore on Tuesday, as per provisional data.
Traders said, the currency market is expected to witness volatility ahead of the Union Budget scheduled Friday. Meanwhile, the benchmark BSE Sensex opened on a cautious note and was trading with gains of 44.19 points, or 0.11 per cent to quote at 39,860.67 while the NSE Nifty was trading at 11,923.65, up 13.35 points, or 0.11 per cent.