Markets open higher, turn volatile later on foreign fund outflows, weak global cues

Equity benchmark indices Sensex and Nifty began the trade on a positive note on Thursday but later faced volatile trends amid unabated foreign fund outflows, monthly derivatives expiry and weak global market cues.

The 30-share BSE benchmark Sensex climbed 231.97 points to 74,834.09 in early trade. The NSE Nifty went up by 65.75 points to 22,613.30.

Later, the indices faced volatile trends and were trading between highs and lows.

From the Sensex pack, Bajaj Finserv, Bajaj Finance, IndusInd Bank, Axis Bank, Nestle and Tata Steel were the biggest gainers.

UltraTech Cement, Mahindra & Mahindra, NTPC, HCL Tech, Tech Mahindra and Tata Motors were among the major laggards.

Foreign institutional investors (FIIs) offloaded equities worth Rs 3,529.10 crore on Tuesday, according to exchange data.

Stock markets were closed on Wednesday for ‘Mahashivratri’.

“Volatility is likely to be the hallmark as traders roll over their February F&O contracts which expires today. Worries over tariffs will continue to weigh on domestic stocks with plenty of uncertainties surrounding the timing and the size, while relentless FII selling leaves investors to worry a lot as they fear the brutal sell-off is likely to get worse,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

He further said on the positive front, WTI oil prices falling towards USD 69 a barrel provides some cheer in an uncertain global market.

In Asian markets, Tokyo quoted in the positive territory while Seoul, Shanghai and Hong Kong traded lower.

US markets ended on a mixed note on Wednesday.

Global oil benchmark Brent crude climbed 0.33 per cent to USD 72.77 a barrel.

The Sensex climbed 147.71 points or 0.20 per cent to settle at 74,602.12 on Tuesday. The Nifty, however, fell for the sixth day, slipping 5.80 points or 0.03 per cent to finish at 22,547.55.