Mumbai: Value buying triggered after three consecutive sessions of falls lifted India’s key benchmark equity indices — S&P BSE Sensex and NSE Nifty50 — marginally in the green on Tuesday.
Besides, oil prices eased-off after hitting $94 per barrel after the initial talks between US and Iran on the nuclear deal. However, the day’s session was marked with volatility as FIIs continued to sell.
The FIIs pumped out Rs 1,967.89 crore from the BSE, NSE & MSEI in the capital market segment.Globally, Asian shares reversed early gains on Tuesday but were still largely in the green, with investors in Chinese stocks unsettled by US moves against 33 Chinese entities.
The European shares extended gains on Tuesday, after the European Central Bank chief eased concerns around faster monetary policy tightening this year.
On the domestic front, volumes on the NSE were higher than recent average. Amongst sectors, metals led the gainers’ pack whereas power and capital goods indices fell the most.
Consequently, the Sensex gained 0.33 per cent or 187.39 points to 57,808.58 points, while Nifty was up 0.31 per cent or 53.15 points to 17,266.75 points.
“Institutional selling seemed to have ebbed especially in largecaps and hence the benchmark indices recovered from intra day lows,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
“However the broader markets still remains under selling pressure. In case the largecaps continue their recovery, then even the broader market could bottom out soon.”
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “Markets are witnessing increasing volatility due to various global as well as domestic factors.”
“After 3 days of fall, Nifty witnessed some recovery from 17,000 odd levels – which continues to act as an important support level for the market.”
In addition, Vinod Nair, Head of Research at Geojit Financial Services said: “Indian equities were highly volatile today, swaying between gains and losses while managing to close on a positive note. Selling pressure from FIIs was countered by bargain hunting by domestic investors.”
“European shares advanced over ECB President’s comments stating that there are lower chances of a measurable tightening of monetary policy, which helped in comforting global investors.”
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