Stock Market Trims Opening Losses: Sensex And Nifty Trade Flat. Realty Index Leads

Stock update: On the 30-share Sensex platform, Titan, M&M, Reliance, Maruti, Sun Pharma, Asian Paints were among the early gainers

The two key equity benchmarks, Sensex and Nifty that opened with cuts tracking losses in global markets, erased early losses and were trading flat, on Friday. The domestic indices slipped into the red in opening trade on rate hike fears in the US. At 9.50 am, the BSE Sensex declined 9 points to 65,776. On the other hand, the NSE Nifty50 was trading at 19,490, down 7 points.

On the 30-share Sensex platform, Titan, M&M, Reliance, Maruti, Sun Pharma, Asian Paints were among the early gainers. On the downside, Bajaj Finance, IndusInd Bank, ICICI Bank, Nestle, PowerGrid, HCL emerged losers. Among specific stocks, Titan and Kalyan Jewellers zoomed 3 per cent and 5 per cent after the two reported 20 per cent and 31 per cent yearly revenue growth for Q1, respectively.

In the broader markets, the BSE Midcap index fell 0.13 per cent, while Smallcap index rose 0.22 per cent.

Sectorwise, Nifty Realty and Consumer Durable indices led gains, rising up to 1 per cent. Auto, Metal and PSB pockets also held tepid gains.

In the previous session on Thursday, the BSE Sensex settled 340 points to 65,786, while the NSE Nifty50 gained 99 points to 19,497.

"It would be difficult for this rally to sustain since the global market construct is turning unfavourable with major weakness in the developed markets and rising bond yields," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

In global markets, stocks in Hong Kong, Japan and Australia declined following overnight losses in US equities as reports suggested the US job market remains much more resilient than expected.

Global oil benchmark Brent crude climbed 0.25 per cent to $76.70 a barrel.

Foreign Institutional Investors (FIIs) continued their buying activity as they bought equities worth Rs 2,641.05 crore on Thursday, according to exchange data.

Meanwhile, the rupee depreciated 8 paise to 82.68 against the US dollar in early trade on Friday amid a muted trend in domestic equities and rising crude oil prices. However, sustained foreign fund inflows supported the local unit and contained the fall.

At the interbank foreign exchange, the domestic unit opened at 82.68, registering a decline of 8 paise over its last close. On Thursday, the rupee had settled at 82.60 against the dollar. Forex traders said participants remained bullish on the greenback due to risk-aversion and rising expectations of hawkish monetary policy by the US Federal Reserve.