Sensex, Nifty rise in volatile trade; FMCG stocks bullish

Domestic equity benchmarks Sensex and Nifty opened in the green on Wednesday, but turned volatile in the wake of weak Asian cues and rupee’s fresh record low.

Asian stocks touched their 14-month lows amid worries of US-China trade conflict and rupee plunged to fresh record low against the US dollar.

The rupee on Wednesday scaled a new record low of 72.92 against dollar in early trade on Wednesday amid renewed global trade war worries.

At 9:30 am, the BSE Sensex was 13 points, or 0.03 per cent, up at 37,426, while the Nifty was 11 points, or 0.09 per cent, down at 11,277.

The Sensex had 16 stocks advancing and 15 declining. Among the top gainers were, PowerGrid, ITC, ONGC, Adani Ports and HUL.

However, Tata Motors, Bharti AirtelNSE -0.53 %, Tata Steel and Sun Pharma were among the top Sensex losers.

BSE FMCG climbed 1.49 per cent on gains in ITC, HUL, Godrej Consumer Products, Nestle and DaburNSE 2.35 %.

Lingering trade war worries, wobbly crude oil prices and turmoil in emerging markets weighed on sentiments.

Domestic market has been under strong pressure since last Monday and equity investors have lost around Rs 4,14,121.84 crore in two sessions as the Sensex erased about 977 points and the Nifty 302 points.

Data on retail inflation for August, IIP for July and manufacturing output for July will be released post market hours of Wednesday.

A lower inflation and higher IIP print may give a leg up to market sentiment. Nirmal Bang Institutional Equities sees CPI print at 3.55 per cent YoY in August, down from 4.17 per cent in July. It expects IIP growth to come in at 7.5 per cent YoY in July against 7 per cent in June.

Source: https://tinyurl.com/ydxr5u6q

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