Indices edge higher in early trade; breadth weak

The domestic equity indices traded near the flat line in early trade. The Nifty traded below the 21,600 level. Barring financial services and Pharma shares advanced while all the sectoral indices on the NSE were traded in red.

At 09:25 IST, the barometer index, the S&P BSE Sensex, declined 8.10 points or 0.01% to 71,064.39. The Nifty 50 index declined 20.70 points or 0.10% to 21,595.35.

The broader market underperformed the frontline indices, the S&P BSE Mid-Cap index declined 0.36% and the S&P BSE Small-Cap index slipped 1.02%.

The market breadth was weak. On the BSE, 895 shares rose and 2024 shares fell. A total of 74 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 126.60 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,711.75 crore in the Indian equity market on 12 February, provisional data showed.

Economy:

India's retail inflation, based on Consumer Price Index Numbers, eased to a three-month low of 5.10% in January 2024 against 5.69% during the previous month, the latest data released by the Ministry of Statistics & Programme Implementation showed on Monday. India's factory output, meanwhile, grew 3.8% in December 2023, the data showed. The IIP in November 2023 stood at 2.4%, while during the year-ago period, the factory output stood at 5.1%.

Stocks in Spotlight:

Coal India rose 0.88%. The company reported 18% rise in consolidated net profit to Rs 9094 crore on a 3% increase in revenue to Rs 36154 crore in Q3 FY24 as compared with Q3 FY23.

Mahindra & Mahindra (M&M) advanced 0.82%. The company reported production of 1,01,169 units in January 2024 as compared to 76,421 units in the corresponding period of the last fiscal. Sales rose to 72,198 units from 61,326 units.

Global Markets:

Asia-Pacific markets were traded mixed on Tuesday ahead of a key U.S. inflation report that could help shape the Federal Reserve's rates outlook and determine the timing of interest rate cuts. Markets are closed in China, Hong Kong, Taiwan and Vietnam for Lunar New Year holidays.

U.S. indices ended on a mixed note on Monday after hitting new highs ahead of data expected to underscore further disinflation, paving the way for the Federal Reserve to start cutting interest rates this year.

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