Markets see volatile trade; Sensex slides 196 points

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Equity market witnessed volatile trading in the morning session on February 13, with benchmark indices Sensex and Nifty shedding their marginal gains amid mixed cues from Asian markets.

Starting off the week on shaky note, the 30-share BSE Sensex declined 196.61 points or 0.32% to 60,486.09 points while the NSE Nifty fell 38.50 points or 0.22% to 17,818 points.

As many as 18 stocks in the Sensex were in the negative territory, with most of the IT shares, including Infosys, Tata Consultancy Services and Wipro slipping in the morning session.

V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said there is no clear direction in the market.

“There are both negative and positive signs. The rise in the dollar index to 103.7 and the hardening of bond yields are unfavourable for emerging market equity. Rising yields indicate that rates will remain higher for longer. Also, the spike in Brent crude to around $86 is a macro concern for India,” he said.

Foreign Portfolio Investors (FPIs) were net buyers on February 10, purchasing shares worth ₹1,458.02 crore. The reversal in selling by FPIs is a positive for the domestic market.

Most of the Asian markets, including Japan and Hong Kong were in the red while China was in the positive territory. On Friday, the U.S. market closed on a mixed note whereas the European market ended with losses.