Sensex, Nifty start on choppy note; RIL up 1%

Equity benchmark indices Sensex and Nifty opened on a choppy note on Thursday, tracking a weak trend in Asian equities and sustained foreign fund outflow.

After opening on a negative note, the 30-share index was trading 46.78 points or 0.08 per cent higher at 55,990.99. Similarly, the broader NSE Nifty advanced 16.80 points or 0.10 per cent to 16,651.45.

Reliance Industries was the top gainer in the Sensex pack, rising around 1 per cent, followed by HCL Tech, Bajaj Finserv, Asian Paints, Bajaj Auto, Bajaj Finance and L&T.

On the other hand, Bharti Airtel, PowerGrid, Maruti, Titan and Axis Bank were among the laggards.

In the previous session, Sensex ended 14.77 points or 0.03 per cent lower at 55,944.21, while Nifty settled 10.05 points or 0.06 per cent higher at its new closing record of 16,634.65.

Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 1,071.83 crore on Wednesday, as per provisional exchange data.

Domestic equities look to be muted as of now, said Binod Modi, Head Strategy at Reliance Securities.

"The government's focus to improve credit growth through credit outreach programmes augur well for domestic economy and corporate earnings.

"Additionally, minutes of the MPC meeting continue to show RBI’s commitment to ensure policy support to sustain economic recovery despite select members showing some apprehensions about high inflation and pitching for gradual normalization in ultra-loose monetary policy. These indicate a sharp economic recovery in the 2HFY22E," he said.

US equities extended gains with S&P 500 and Nasdaq witnessing fresh record highs ahead of Fed Chairman Jerome Powell’s speech on Friday at Jackson Hole Symposium.

Elsewhere in Asia, bourses in Shanghai, Hong Kong and Seoul were trading in the red in mid-session deals, while Tokyo was positive.

Meanwhile, international oil benchmark Brent crude fell 0.53 per cent to $70.90 per barrel.