Stock Market Pares Early Gains: Sensex, Nifty Trade Flat. Auto Leads, PSBs Slip

Stock update: On the 30-share Sensex platform, SBI, Axis Bank, Infosys, Tata Steel, TechM, Sun Pharma were trading in losses

The two key equity benchmarks, Sensex and Nifty, on Wednesday pared their opening gains and started trading in the red. The two domestic indices opened with nominal gains despite losses in other global markets, ahead of US CPI data later today.

At 9.40 am, the BSE Sensex was marginally down by 15 points to 61,746. On the other hand, the NSE Nifty was trading at 18,260, down 5 points.

On the 30-share Sensex platform, SBI, Axis Bank, Infosys, Tata Steel, TechM, Sun Pharma were trading in losses. On the upside, IndusInd Bank, PowerGrid, Tata Motors, Reliance, Nestle, ITC emerged early winners.

Among stocks, Shipping Corp surged 5 per cent on posting a net profit of Rs 376.9 crore in Q4FY23 versus Rs 148 crore a year ago. SpiceJet lost 2 per cent after approached the DGCA for deregistration of the airline's three planes.

In the broader markets, the BSE Midcap and Smallcap indices rose up to 0.4 per cent.

Sectorwise, Nifty Auto, FMCG, and Media indices held most gains, rising up to 0.6 per cent, while Nifty PSB continued to be the biggest laggard, dropping over 1.5 per cent.

In the previous session on Tuesday, the BSE Sensex closed at 61,761, down 3 points. On the other hand, the NSE Nifty settled at 18,266, up 1.5 per cent.

In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were trading lower. The US markets had ended in the negative territory on Tuesday.

"US inflation data for April will be keenly focused as this would provide some indication about the Fed's next course of action on the rate front," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Global oil benchmark Brent crude declined 0.70 per cent to $76.90 per barrel.

Foreign Institutional Investors (FIIs) were net buyers on Tuesday as they bought equities worth Rs 1,942.19 crore, according to exchange data.

The rupee gained 10 paise to 81.96 against the US dollar in early trade on Wednesday tracking the weakness of the American currency in the overseas market. Forex traders said significant foreign fund inflows and easing crude oil prices supported the local unit.

At the interbank foreign exchange, the domestic unit opened at 82.06 against the dollar and then rose to 81.96, registering a gain of 10 paise over its previous close. On Wednesday, the rupee closed at 82.06 against the US currency.