Sensex, Nifty gain sharply after flat opening; HUL, HCL Tech gain over 1%

Benchmark stock market indices gained sharply after opening flat on Tuesday as volatility continues to remain high in the wake of weak global cues and selling pressure from foreign institutional investors (FIIs).

At the opening bell, the S&P BSE Sensex was trading flat but gained nearly 300 points in the first 10 minutes and climbed to 60,372. The NSE Nifty50 was inching closer to 18,000 after gaining nearly 80 points.

While domestic stock markets continue to remain volatile, a decision by the central government to cap windfall tax on crude oil, aviation turbine fuel and diesel curbed losses during the trading session.

Sectoral indices were mixed in morning trade, with Nifty FMCG and Nifty PSU Banks gaining the most, while Nifty Media was among the six major indices that suffered early losses.

Out of the 30 shares listed on the Sensex index, 24 were trading in positive territory with Hindustan Unilever (HUL), HCL Tech, L&T and NTPC gaining over one per cent. IndusInd Bank, Bajaj Finance, Sun Pharma, Tata Steel, Mahindra and Mahindra and Titan were trading in the red.

Domestic markets have been swinging between losses and gains over the past few trading sessions, which were marked by an increase in volatility as investors remain cautious in view of the mixed global environment and continued pressure by FIIs, who have extended their selling streak for the 17th day in a row.

Stock markets around the world could face further pressure as China’s economy slowed in the fourth quarter due to stringent Covid-19 curbs and this could significantly hurt the global growth story.

Another important factor that could dictate Asian markets is the outcome of the Bank of Japan’s meeting to take a decision on tightening its monetary policy. The Bank of Japan is one of the few central banks around the world that has been clinging to stimulus rather than going for rate hikes.