Sensex, Nifty gain amid firm global cues; inflation data awaited

India VIX, which measures volatility over the next few days, was marginally up to trade around 14 level

Equity benchmarks the Sensex and the Nifty gained on March 12 morning amid firm global cues. Analysts expect time-wise profit-booking to take place in this bullish market but say their is no reason to worry until the Nifty stays above 22,200.

The Sensex and the Nifty rose up to 0.5 percent at 73,895 and 22,423. The India VIX, which measures volatility over the next few days, was marginally down below 14 level.

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Aamar Deo Singh, Senior Vice President, Angel One, asked investors to exercise caution as markets await key data points like inflation figures and the Federal Reserve's interest rate stance.

"On the downside, the Nifty will have the support of 22,150-22,200. If this range is breached, investors can expect at least 200 point correction. Otherwise, resistance is eyed at 22,500 for the short-term," he told Moneycontrol.

On the other hand, Anand James, Chief Market Strategist, Geojit Financial Services expects multiple swings for Nifty within the 22,000-22,410 region.

Meanwhile, broader markets bled as Nifty Midcap 100 and Nifty Smallcap 100 indices tumbled up to 0.7 percent within the first hour of trade.

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However, Singh of Angel One said that he expects some bounce-back or temporary respite in the next few days for broader indices as technical indicators signaled them in an oversold territory.

Sectorally, Bank Nifty and Nifty IT indices led the gains by rising 0.8 percent each on March 12 morning, whereas Nifty FMCG and Nifty Realty indices were the top sectoral losers, declining over 1 percent each.

Global markets firm; US inflation data eyed

Globally, US markets were mixed overnight as investors await key inflation reading on March 12. This will indicate Federal Reserve's monetary policy path going ahead.

Dow Jones was up 0.1 percent, while tech-heavy NASDAQ Composite and the S&P 500 indices declined up to 0.4 percent on March 11.

Majority of Asia-Pacific markets were up this morning as Japan's core inflation figures for January was higher-than-expected.

Japan's Nikkei 225 index slipped for the second straight day as it lost over 1 percent, while Australia's S&P 200 index gained 0.2 percent, and South Korea's Kospi was up 0.2 percent.

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