Sensex ends 130 points lower, Nifty below 9,200; Broader markets outperform

The S&P BSE Midcap and the S&P BSE Smallcap outperformed benchmark indices; up 0.6% each

Benchmark indices settled the day lower after witnessing a higher opening as investors stay cautious ahead of the March-quarter earnings season before taking any large positions.
 
Both Sensex and Nifty have gained in double-digits so far this year with NSE Nifty touching a record high of 9,273.90 last week, on the back of strong foreign investments and hopes for additional economic reforms.
 
The S&P BSE Sensex ended the day at 29,576, down 131 points, while the broader Nifty50 settled at 9,181 down 17 points.
 
In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices outperformed benchmark indices; gained 0.6% each. 

"The Market veered towards consolidation due to stretched valuation and prevailing geopolitical risk. Unveiling of fourth quarter results will determine the next leg of rally. And the economic data during the week like CPI inflation, IIP are also under inventors’ radar to get cues on RBI for any prolonged pause in its neutral stance,"  said Vinod Nair, Head of Research, Geojit Financial Services in a technical note.

The market breadth was in the positive segment, but was narrowing as 1,715 shares advanced against a decline of 1,171 shares, while 130 shares were unchanged.
 
The rupee further dropped 21 paise to 64.49 against the dollar today on growing safe haven appeal of the American currency after increased geo-political risks and higher chances of a tighter US monetary policy.
 
Buzzing Stocks
 
Axis Bank, Tata Motors, Coal India and Adani Ports were the top gainers on both indices, while Infosys, Wipro Asian Paints, and Reliance were the top losers.
 
Indian Oil Corp rose as much as 3.6% to a record high of Rs 413.80 after a report that state-run oil marketing companies were mulling a plan that would allow daily changes in the price of automotive fuels. The stock ended 3.4% higher. BPCL, OIL and HPCL also rose 3.2%, 1.6% and 1.4% respectively.
 
Bhushan Steel surged as much as 12.92% to its 52-week high after Business Standard reported that the company last month submitted its final proposal for debt restructuring under the central bank's S4A scheme. The stock ended 12.65% higher.
 
Apollo Tyres advanced 1.5% as after it commenced the commercial production at manufacturing facility in Hungary.
 
Global Markets
 
Asian stocks were muted on Monday as investors refrained from making big bets because of geopolitical tensions in the Middle East and the Korean peninsula.
 
MSCI's broadest index of Asia-Pacific shares outside Japan fell for a third consecutive session, heading back towards a three-week low tested on Friday.
 
European stocks were little changed though shares of mining major BHP Billiton jumped more than 5 percent after activist hedge fund Elliot Management urged the company to pursue a spin-off of its U.S. business.
 
Global stocks have traded flat over the past month as investors, after the 10% rise since last November's lows has taken valuations above long-term averages. The MSCI AC World index trades at 16 times forward earnings, compared to a 15-year average of about 14 times.