Markets

Sensex turns volatile after constituent rejig; Nifty holds 12,200

The BSE building in Mumbai. File

The BSE building in Mumbai. File  

Yes Bank, Vedanta, Tata Motors and Tata Motors DVR have exited the index to make way for Titan Company, UltraTech Cement and Nestle India.

Equity benchmark BSE Sensex turned volatile on Monday, dropping over 150 points in opening session amid stock-specific action after a rejig of its constituents.

Yes Bank, Vedanta, Tata Motors and Tata Motors DVR have exited the index to make way for Titan Company, UltraTech Cement and Nestle India.

The 30-share BSE index was trading 60.68 points or 0.15 % lower at 41,620.86 in early session.

Similarly, the broader NSE Nifty fell 11.05 points or 0.09 % to 12,260.75.

Titan was the top gainer in the Sensex pack, rising up to 2 per cent after its inclusion in the index. Kotak Bank, Tata Steel, UltraTech Cement, ONGC, HUL and TCS were also trading in the green.

On the other hand, RIL was the top loser, shedding up to 2.09 %, followed by Bharti Airtel, Nestle, Bajaj Auto, Techm, HDFC Bank and ICICI Bank.

In the previous session, the 30-share gauge closed 7.62 points, or 0.02 %, higher at 41,681.54. Similarly, the broader NSE Nifty rose 12.10 points, or 0.09 per cent, to its new record of 12,271.80.

Meanwhile, on a net basis, foreign institutional investors bought equities worth ₹ 338.86 crore, while domestic institutional investors sold shares worth ₹ 285.41 crore on Friday, data available with stock exchange showed.

According to experts, the Sensex reshuffle can lead to some price movements as fund managers adjust their portfolios.

Further, investors will also track Reserve Bank of India’s special ₹ 10,000-crore open market operation (OMO) on Monday.

Such exercises are done by the central bank when the proceeds from sale of short-term securities are used to buy long-term government securities or bonds in a bid to bring down interest rates on long-term securities.

Market may witness a short-term consolidation as investors may slid to a holiday mood, traders said.

Bourses in Shanghai and Seoul were trading on a negative note, while those in Hong Kong and Tokyo were trading in the green.

Brent futures, the global oil benchmark, fell 0.30 % to $65.94 per barrel.

Meanwhile, the rupee depreciated 5 paise to 71.17 against the US dollar in morning session.

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Printable version | Feb 23, 2020 1:59:43 PM | https://www.thehindu.com/business/markets/sensex-turns-volatile-after-constituent-rejig-nifty-holds-12200/article30377450.ece

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