Sensex, Nifty gain in early trade; BF Utilities tanks 10%, Bajaj Finance drops 6%

Domestic stock indices opened higher on Thursday morning, tracking strong global cues. The gains were, however, capped amid a hawkish Fed and concerns over the global economy.

At 9.20 am, the 30-share pack BSE Sensex was up 65 points, or 0.09 per cent, at 60,723. The NSE's barometer Nifty was up 6 points or 0.03 per cent at 18,050 mark.

Among broader stock indices, the BSE midcap index was trading in the red. The BSE smallcap index was marginally up. Fear gauge India VIX eased slightly to 15.18-level.

The US Fed minutes were distinctly hawkish, with the message that restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path to 2 per cent, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In spite of this hawkish minutes the US markets closed in the positive territory overnight because the markets are expecting a soft landing for the US economy since the economy continues to be resilient, he added.

"In India the near-term challenge to the market comes from the sustained selling by FIIs who sold Rs 2620 crores equity in the cash market yesterday."

Major sectoral indices were range bound. Buying action was seen in FMCG, autos, metal and capital goods stocks. Selling pressure was seen in select banks, technology and financials counters.

Bajaj Finance topped Nifty losers, cracking 6 per cent, followed by 3 per cent decline in Bajaj Finserv. Power Grid and Apollo Hospitals shed a per cent each.

On the other hand, Britannia Industries rallied 2 per cent followed by one per cent gains in Sun Pharma, Hindustan Unilever, Tata Consumer, Bajaj Auto, ITC and Hero Motocorp each.

Engineers India, IFB Industries, AGI Greenpack, Olectra Greentech jumped 4-8 per cent. BF Investment hit its lower circuit of 10 per cent in early trade.

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