Sensex, Nifty open on a volatile note; HCL Tech rallies 5 pc

Domestic equity benchmarks BSE Sensex and NSE Nifty started on a highly volatile note on Thursday amid weak domestic cues.

After gyrating nearly 250 points in opening session, the 30-share index was trading 4.78 points or 0.01 per cent down at 36,685.72 at 0930 hours; and the broader Nifty slipped 4.30 points or 0.04 per cent to 10,851.20 in morning trade.

In the previous session on Wednesday, the 30-share index the 30-share index settled 286.35 points or 0.77 per cent lower at 36,690.50. The Nifty also fell 92.75 points or 0.85 per cent to 10,855.50.

Top losers in the Sensex pack during early trade included IndusInd Bank, Tata Steel, Axis Bank, RIL, HDFC, TechM and Asian Paints, shedding up to 3 per cent.

While, HCL Tech was the top gainer, rallying over 5 per cent, followed by Bharti Airtel, Hero MotoCorp, Tata Motors, Infosys and Bajaj Auto, rising up to 2 per cent.

Market volatility extended to the second day after Reserve Bank of India (RBI) on Wednesday reduced its growth projection for the Indian economy to 6.9 per cent for the current financial year, from 7 per cent forecasted in June, due to a slowdown in demand and investments.

The central bank, after the meeting of rate-setting panel Monetary Policy Committee (MPC), cut interest rate by an unusual 35 basis points to a nine-year low of 5.40 per cent in an attempt to boost an economy growing at its slowest pace in nearly five years.

According to experts, a downside risk to the lowered growth forecast due to growth headwinds in global economy and slowdown in domestic consumption has curtailed domestic investors sentiment.

Unabated foreign fund outflow too weighed on market mood, traders said.

Foreign portfolio investors sold shares worth a net of Rs 383.66 crore on Wednesday, while domestic institutional investors (DIIs) bought shares worth Rs 531.56 crore, provisional data showed.

Elsewhere in Asia, Hang Seng, Kospi, Shanghai Composite Index and Nikkei were trading in the green in their respective late morning sessions.

On the other hand, bourses on Wall Street ended higher on Wednesday.

The rupee, meanwhile, appreciated 8 paise against its previous close to trade at 70.80 in early session.

Brent crude futures, the global oil benchmark, spiked 2.70 per cent to trade at 57.75 per barrel.