Shares mixed as financials decline despite IT rebound

Shares mixed reaction: Shares struggled for direction on Thursday, with financials falling after a two-session rally, while information technology rebounded along with a post-results jump in Mahindra & Mahindra.

The NSE Nifty 50 index was up 0.22 per cent at 21,891.30, while the S&P BSE Sensex added 0.16 per cent to 71,930.54, as of 10:25 am.

The benchmarks had a choppy start to trading, fluctuating between 0.2 per cent gains and 0.3 per cent losses in the opening hour of trade.

Small- and mid-cap indexes climbed about 1 per cent each, outperforming the blue-chip indexes.

Saurabh Jain, assistant vice president of research for retail equities at SMC Global Securities, noted the resilience of domestic markets despite weak global cues, suggesting that they have rallied significantly since November 2023.

High volatility 

Jain anticipates high volatility and suggests increasing exposure to large-cap stocks while trimming investments in some small- and mid-caps.

The volatility index has hovered around 10-month highs since January 30, ahead of the interim budget.

Ten of the 13 major sectors logged gains, with financial services falling 0.3 per cent after a 2.04 per cent jump in the previous two sessions.

IT stocks added 1 per cent on Thursday, recovering from losses in the previous session amid concerns over potential delays in US interest rate easing.

Auto stocks advanced 1 per cent, with Mahindra & Mahindra jumping about 5 per cent, leading as the top Nifty 50 gainer.

Energy stocks climbed 1.5 per cent, supported by a sustained post-results rally in Coal India and oil marketing companies like Bharat Petroleum Corporation and Indian Oil Corporation.

(with Reuters inputs)