Sensex, Nifty shed opening gains, key factors that may keep investors on edge

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Published: February 17, 2020 10:49:10 AM

After opening higher, Sensex and Nifty erased most of the morning gains to trade flat. S&P BSE Sensex was trading 50 points or 0.09 per cent lower at 41,220 points while the broader Nifty 50 index was trading flat to negative at 12,093 points

Sensex, NiftyMarkets are closely eyeing the developments on the Coronavirus front and that will remain on the traders’ radar

Domestic equity market benchmarks Sensex and Nifty were trading flat to negative in the opening session on Monday tracking weakness in Asian markets amid coronavirus fears. “Since the earnings season is now behind us and there’s no major domestic event, global cues will dictate the market trend. Markets are closely eyeing the developments on the Coronavirus front and that will remain on the traders’ radar. We expect Nifty to consolidate further within 11,900-12,300 zone. We advise focusing on more on defensives viz. IT, Pharma and FMCG and select private banking majors for long trades while any rebound in the PSU banking and auto can be considered to create fresh shorts,” Ajit Mishra Vice President, Research, Religare Broking Ltd said.

Key factors from today’s trade-

Sensex, Nifty shed opening gains- After opening higher, Sensex and Nifty erased most of the morning gains to trade flat. S&P BSE Sensex was trading 50 points or 0.09 per cent lower at 41,220 points while the broader Nifty 50 index was trading flat to negative at 12,093 points.

14 out of 30 stocks in red- As many as 14 stocks out of 30 Sensex stocks were trading lower. ONGC was the top loser, down 2.81 per cent, followed by SBI, HDFC, Sun Pharma and Bajaj Auto. On the flip side, Titan was the top Sensex gainer, up 1.86 per cent. Nestle India, Tata Steel, HUL and TCS were among the top gainers on the index.

Most of the sectoral indices trade lower- Except Nifty FMCG and Nifty IT index, all the sectoral indices were trading lower. Nifty PSU Bank index was 2 per cent down weighed by J&K Bank, Indian Overseas Bank, PNB and Bank of Baroda. While Nifty FMCG index was up led by gains in Godrej Industries, Emami, HUL and Nestle India.

Death toll from coronavirus rises- The death toll from a coronavirus outbreak in mainland China reached 1,770 as of the end of Sunday, up by 105 from the previous day, the country’s National Health Commission said on Monday morning. There were 2,048 new confirmed infections across mainland China reported on Sunday, as per Reuters news report.

Global markets- Asian shares fell as the coronavirus fears return. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 per cent to 555.50, easing further from last week’s top of 558.30, which was the highest since late January. Australian shares and South Korea’s KOSPI index were each down 0.3 per cent. On Wall Street, the Dow Jones Industrial Average dipped 25.23 points, or 0.1 per cent, to close at 29,398.08 on Friday. The S&P 500 gained 0.2 per cent to close at 3,380.16, but eked out a record closing high. The Nasdaq Composite also advanced 0.2 per cent to 9,731.18 and hit an all-time closing high.

FII and DII data- Foreign institutional investors (FIIs) sold equities worth of Rs 704.92 crore, while domestic institutional investors (DIIs) bought equities worth of Rs 219.54 crore on a net basis on Friday, as per the data withe NSE.

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