Sensex trades flat ahead of F&O expiry day; IT stocks in demand

NEW DELHI: Benchmark indices traded flat on Thursday as Omicron cases shot up significantly across India, practically starting the third wave. IT stocks saw buying while banks were under pressure.

The futures and options (F&O) contracts for December will also expire today that may induce some volatility but analysts said the indices will likely end on a flattish note.

“The traditional post-Christmas bullish mood seems to be waning as fears of Omicron continue to weigh on markets with WHO warning that a 'tsunami' of infections would push health systems to the brink of collapse,” Sageraj Bariya, Vice President - Institutional Sales, East India Securities.


How are bluechips doing
After opening in the red, benchmark indices erased losses to trade higher. At 10.09 am, BSE flagship Sensex was up 117 points or 0.21 per cent to 57,926. NSE benchmark Nifty traded 32 points or 0.19 per cent higher at 17,246.

In the 50-share pack Nifty, Wipro was the biggest gainer, up 1.34 per cent. Eicher Motors, Tata Consumer, Dr Reddy’s Labs, Power Grid, HCL Tech, Bharti Airtel and Tata Steel were among other gainers.

Bajaj Finserv was the top loser in the pack, down 1.59 per cent. Bajaj Auto, Adani Ports, BPCL, L&T, Indian Oil, Hero MotoCorp, Coal India and SBI were other stocks that traded in the red.

FACTORS DRIVING MARKETS
Third wave begins: Authorities in various parts of India said the third wave of infections has begun. Virus cases more than doubled in Delhi and Mumbai in a single day, forcing the governments to enforce more restrictions.

Yields firm up: Benchmark 10-year US Treasury yields firmed to near a one-month peak. However, the dollar index steadied near a one-month low as investors looked beyond a surge in Omicron Covid-19 variant cases and favoured riskier currencies.

Supply bottleneck easing?: Data from South Korea showed a 5.1 per cent surge in November industrial output could signal an easing in global supply bottlenecks.

Broader markets
Broader market indices were trading mixed, outperforming their headline peers in morning trade. Nifty Smallcap was up 0.32 per cent while Nifty Midcap declined 0.13 per cent. Broadest index on NSE, Nifty 500 was down 0.02 per cent.

Dr Lal Pathlabs, Oil India, Tata Elxsi, Kalpataru Power, Suzlon Energy and Vakrangee were gainers from the space while Balrampur Chini Mills, Delta Corps, Gujarat Narmada Fertilisers, RBL Bank, Shriram Transport and Godrej Properties were under selling pressure.

Global markets
MSCI's broadest index of Asia-Pacific shares outside Japan was flat on the day. Japan's Nikkei slipped 0.7 per cent on Thursday.

S&P 500 futures eased 0.2 per cent in early trade, while Nasdaq futures lost 0.3 per cent.