Market shrugs-off tepid global cues; firm trades continue

Globally, the standoff between Russia and Ukraine is being watched keenly by the markets. With the Russian government paying no heed to the plans set forth by the US and European Union, markets continue to remain nervous.

On Friday, European markets ended down about two per cent, while the US markets ended flat with an upward bias.

Markets yet again touched a new high on Monday led by banking and financial heavyweight stocks.  

Market experts attribute the exuberance in market to consistent buying from foreign institutional investors (FIIs) in the past seventeen consecutive sessions. 

FIIs bought shares worth Rs 5,044.54 crore in the week, including provisional data of March 7.

The Sensex's all-time high of 22,005.54 points marked its third consecutive record high in as many sessions, while the Nifty hit a second consecutive milestone at 6,545.10 poi

After briefly touching 22,000 mark, the 30-share BSE Sensex edged lower and is currently trading 52 points higher at 21,972 levels and the 50-unit NSE Nifty was up 11 points at 6,538.

Broader markets currently outperform the benchmark stock indices. Both BSE mid-cap and small-cap indices are up between 0.3-0.5 percent.

Reliance, HDFC Bank, Larsen, SBI and Bharti Airtel are the top Sensex gainers at this hour.

Among sectors, BSE capital goods index is up almost 2%. Crompton Greaves, BHEL and L&T, from the space, are up between 2-3% in morning deals.

BSE Bankex and power are other top-performing sector indices at this hour. IndusInd Bank is up almost 5% on BSE while Bank Of Baroda and Yes Bank are the other top gainers among heavyweight banking stocks at this hour.

Global markets

Japanese shares slipped from a five-week high on Monday morning as disappointing Chinese trade data and uncertainty over the crisis in Ukraine prompted investors to lock in recent gains. Although the US jobs data released on Friday was surprisingly strong, it provided limited support because it also cemented expectations of a further reduction in US monetary stimulus

Asian stocks slipped in early trade on Monday and the dollar stepped back from its recent highs as disappointing Chinese trade data and uncertainty over the crisis in Ukraine kept risk appetite in check.

The market ignored stronger-than-expected US nonfarm payrolls report, which showed employers had added 175,000 jobs last month, up from 129,000 new positions in January.

Foreign investors posted on Friday their biggest daily purchases since Dec. 9, or a net 25.77 billion rupees ($420.73 million). That marked a 16th consecutive buying session for a net total of about $1.4 billion.

The rupee is trading at 61.23 versus the dollar.

Industrial production data for January will come out on Wednesday. The consumer price index (CPI) for February will be announced on Wednesday, while data for inflation based on the wholesale price index (WPI) is due on Friday.