Sensex slips 100 points, Nifty tests 10,750 on weak Asian cues

NEW DELHI: Benchmark indices opened on a cautious note on Monday ahead of release of inflation data later in the day. A total of 24 of 30 Sensex stocks were trading lower in early trade but a 3 per cent jump in Infosys shares capped the downside.

At 9.20 am, the 30-pack index was ruling 126.55 points, or 0.35 per cent, lower at 35,885.29. The Nifty50 index fell 37.80 points, or 0.35 per cent, at 10,757.15. Fear gauge India VIX spiked 7.18 per cent.

Most Asian markets were trading in the red, falling up to 1.50 per cent.


Larsen & Toubro (L&T) fell 1.29 per cent to Rs 1,362.60. Axis Bank declined 1.49 per cent to Rs 656.55. Tata Motors, IndusInd Bank and Tata Steel dropped up to 1.2 per cent. Infosys jumped 2.68 per cent to Rs 702, tracking strong gains in its ADR on Friday. Sun Pharma, Hindustan Unilever and YES Bank added up to 0.6 per cent.

“A move beyond the higher end of 10,870 would unfold the next leg of the rally towards 10,970-11,150 levels. However, in case of a breach below 10,733, it would certainly not bode well for the bulls. In such scenarios, one should wait for a confirmation to place aggressive bets. Until then a prudent strategy would be to focus on individual stocks by following a proper exit strategy,” Angel Broking said in a note.


The day will see release of WPI inflation data for December. The number may come in at 4.13 per cent YoY against 4.6 per cent in November, said Nirmal Bang Institutional Research.

"A lower base is likely to have an adverse impact on WPI inflation, but this will be offset to a large extent by soft food prices and the decline in fuel prices. Core WPI inflation is also likely to soften to 4.99 per cent from 5.22 per cent earlier," it said.

Data showed foreign portfolio investors (FPIs) sold Rs 687.20 crore worth of domestic stocks on Friday. DIIs were net buyers to the tune of Rs 123.17 crore, data suggested.