Sensex Flat Amid Asian Weakness; Titan Gains

The BSE Sensex traded with modest losses on Wednesday despite a sharp selloff across Asian markets. The Nikkei index in Japan slumped nearly 2.5 per cent as risk aversion rose on increasing possibility of Ukraine slipping into a civil war. Ukraine has so far experienced its deadliest week since the separatist uprising began.

Indian markets are still within striking distance of their record highs, thanks to expectations of a stable government post May 16.

Markets have corrected over the last week, but the Sensex and Nifty are still sitting at the top end of the rally, Phani Shekhar of Angel Broking told NDTV. Volatility is likely to rise sharply from May 13 as exit poll results would be out by then, he added.

Independent analyst Sarvendra Srivastava says markets have been directionless on low volumes ahead of elections results. The Nifty may continue to trade between 6,700-6,870 with critical supports at 6,650, he added.

Overseas investors, who have been the biggest driver of the current rally, continue to be net buyers in the cash market. However, the momentum has come down sharply over the last few days. FIIs bought equities worth Rs 46 crore yesterday. Year-to-date, they have bought equities worth over $5 billion, leading to over 6 per cent gains in the Sensex.

Consumer durables shares saw buying today. Titan rose as much as 3.2 per cent after it beat Q4 Street expectations.

22 stocks traded higher on the Nifty, led by drugmaker Lupin, which gained 1.4 per cent ahead of its Q4 results. Cipla, Cairn India, HCL Tech and BPCL also traded with over 1 per cent gains.

Hindalco was the top Nifty loser, down 1.3 per cent. HDFC, which reported in line numbers yesterday, traded 0.9 per cent lower.

As of 09.38 a.m., the Sensex traded 8 points lower at 22,500, while the Nifty was flat at 6,713.