Stock Market Update Today, Feb 10: Markets Stay on Edge: Weak Global Cues and FII Selling Cap Upside

Market Outlook:
Indian equity markets are expected to trade with a cautious bias amid weak global cues and lingering uncertainty around global growth and interest rate trajectory. Overnight weakness in US markets and mixed Asian cues point towards a muted opening for domestic indices. Volatility remains elevated, suggesting range-bound movement with heightened sensitivity to global developments and stock-specific triggers.

FII and DII Activity:
Foreign Institutional Investors (FIIs) continued to remain net sellers, indicating sustained risk aversion and profit booking at higher levels. Domestic Institutional Investors (DIIs), however, extended selective buying, providing some stability to the market and cushioning downside pressure, especially in large-cap stocks.

Sector Activity:
Sectorally, selling pressure was observed across IT, Metals, FMCG, Auto, Realty, and Private Banks, largely driven by global weakness and margin concerns. PSU Banks and select mid-cap pockets showed relative resilience on the back of valuation comfort and selective accumulation, highlighting ongoing sector rotation.

Derivatives – Long, Short, Long Unwinding & Short Covering:
Derivatives data indicates selective long buildup in stocks such as UNOMINDA, NYKAA, and POLICYBZR, reflecting cautious optimism. Fresh short buildup was seen in NAUKRI, LTF, and KAYNES, pointing to bearish positioning. Long unwinding was evident in BAJAJ-AUTO, VBL, and ALKEM, suggesting profit booking, while short covering in FEDERAL BANK and BDL signals easing downside pressure at lower levels.

Top 5 News:
• Kaynes Technology reported strong quarterly performance supported by execution strength and order inflows.
• Bharti Airtel posted muted net profit due to exceptional items, though operational metrics remained robust.
• LIC delivered steady earnings growth with improvement in premium collections and product mix.
• Hindustan Copper reported sharp profit growth and announced an interim dividend.
• Global metal prices remained volatile amid a stronger US dollar and cautious central bank commentary.