Markets end marginally higher amid volatile trade

MUMBAI: Equity benchmark indices ended marginally higher on Thursday amid volatility faced during the last minutes of trading hours as concerns over rising inflation and fears of monetary tightening worldwide hit the sentiment.

The BSE Sensex eked out marginal gains of 44.42 points or 0.07 per cent to settle at 61,319.51. During the day, it jumped 407.16 points or 0.66 per cent to 61,682.25.

The NSE Nifty advanced 20 points or 0.11 per cent to end at 18,035.85.

''Markets ended marginally higher in a trading session marked with extreme volatility. Traders seem to be taking a cautious stance, especially after the rout in Adani group stocks in recent weeks.

''With inflation levels once again inching up, there are concerns that central banks worldwide could continue their rate hiking trend, which could further hurt growth and dampen sentiment,'' said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

From the Sensex firms, Tech Mahindra jumped 5.58 per cent, followed by Nestle, Tata Steel, NTPC, Tata Consultancy Services, Asian Paints, Wipro and Bajaj Finserv.

Mahindra & Mahindra, Hindustan Unilever, Axis Bank and Bajaj Finance were among the major laggards.

''The domestic market absorbed the buoyancy in the global market, led by IT stocks, while upstream oil companies gained as a result of the slash in windfall tax. After robust jobs data, strong retail sales numbers in the US showed proof of resilience in the US economy amidst concerns over elevated inflation numbers. However, the gains were capped by worries that a stronger economy would attract a tighter monetary policy,'' said Vinod Nair, Head of Research at Geojit Financial Services.

In the broader market, the BSE midcap gauge jumped 0.93 per cent and smallcap index climbed 0.90 per cent.

Among the sectoral indices, realty jumped 1.34 per cent, metal rallied 1.28 per cent, IT climbed 1.27 per cent, industrials (1.13 per cent), commodities (1.08 per cent) and capital goods (0.97 per cent).

Financial Services, FMCG, auto and bankex were the laggards.

The government has cut windfall profit tax on export of diesel and ATF to their lowest while also reducing the levy on domestically-produced crude in line with softening international oil prices, according to an official order.

Foreign Portfolio Investors (FPI) were net buyers as they bought shares worth Rs 432.15 crore on Wednesday, according to exchange data.

Among Asian markets, Japan, South Korea and Hong Kong ended higher, while China settled lower.

European markets were trading in the green. The US markets had ended in the positive territory on Wednesday.

International oil benchmark Brent crude dipped 0.35 per cent to USD 85.08 per barrel.