Indian equity benchmarks saw gains and losses on Tuesday and extended their winning streak for the fifth consecutive session, despite weak global sentiments.
The 30-stock S&P BSE Sensex ended a touch higher at 58,136.36, up 20.86 points or 0.04 per cent. The Nifty 50 of the National Stock Exchange had closed at 17,345.45, up 5.40 points or 0.03 per cent on Tuesday.
Sensex and Nifty started the day in red, but trading remained volatile.
Both the indices were down 0.6 per cent earlier in the day but the closing hours of the session saw a correction on positive cues from the Indian rupee, which strengthened to 78.49 per dollar, the highest level since June 28.
Samrat Dasgupta, chief Samrat Dasgupta said, “One of the main factors of a rebound is the movement of the rupee. The appreciation of 40 paise in a day doesn’t happen very often, even though the global markets are down, the rupee really helped the market.” of it.” The executive officer of Esquire Capital Investment Advisors told Reuters.
IndusInd Bank, Asian Paints, NTPC, Maruti, Hindustan Unilever, State Bank of India, Mahindra & Mahindra and Power Grid were the top gainers in the Sensex index.
IndusInd Bank rose 2.59 per cent to Rs 1067.85. Asian Paints rose 2.18 per cent to Rs 3396.05. Maruti Suzuki rose 1.81 per cent to Rs 9167.
NTPC, Kotak Bank, Hindustan Unilever, Power Grid Corporation, State Bank of India and Mahindra & Mahindra were among the major Sensex gainers.
Index heavyweight Reliance Industries Ltd closed 0.31 per cent higher at Rs 2583.10.
Selling pressure was seen in private banks and IT stocks.
Tech Mahindra, HDFC, Larsen & Toubro, Tata Steel and HDFC Bank were the biggest laggards.
Tech Mahindra closed at Rs 1032.50, down 1.63 per cent. HDFC closed at Rs 2351.10, down 1.30 per cent. L&T closed at Rs 1792.50, down 1.20 per cent.
Other major Sensex losers included Tata Steel, HDFC Bank, Bharti Airtel, ICICI Bank Dr Reddy’s Laboratories and Infosys.
“Global indicators did not favor the bulls, with most Asian and Western markets trading lower on concerns of rising geopolitical tensions between the US and China. Additionally, economic data points to a slowdown in demand around the world. Major markets are trading with bearish apprehensions,” Vinod said. Nair, head of research, Geojit Financial Services, told PTI.
The domestic market, however, has proved resilient due to rising demand for heavyweights and a fall in US treasury yields and strengthening of the Indian rupee on account of FII buying, Mr Nair said.
On the other hand, world stocks fell and bond yields fell on Tuesday, fueling fears of a global recession and worries that US House of Representatives Speaker Nancy Pelosi’s visit to Taiwan would further damage relations between China and the United States.
Investors sought safe haven assets after Pelosi threatened China with repercussions if she visited the self-governing island, which Beijing claims as its territory. China has repeatedly warned about Pelosi going to Taiwan. Washington said on Monday that it would not be afraid of China.
The MSCI World Equity Index, which tracks stocks from 47 countries, fell 0.4 per cent. The broader euro STOXX 600 shed 0.7 percent before recovering some of its losses.
A futures gauge showed Wall Street shares were down about 0.7 per cent.
“It’s about the threat to Taiwan,” said Robert Alster, chief investment officer at Close Brothers Asset Management. “There’s no way you can say it’s not on the geopolitical agenda.”
MSCI’s broadest index of Asia-Pacific shares retreated 1.3 per cent. Taiwan’s stock index fell as much as 1.9 per cent, while Chinese blue chips shed 2.5 per cent before recoupling some of their losses.
Brent futures closed at $99.55 a barrel after falling nearly $4 overnight. US West Texas Intermediate futures also settled at $93.59, extending Monday’s decline of nearly $5.
Looking ahead, traders will focus on the Reserve Bank of India’s (RBI) monetary policy decision on interest rates on Friday.
With multi-year high inflation, the RBI’s Monetary Policy Committee is seen raising rates, although views on the quantum of the increase were divided widely between 25 basis points and 50 basis points, according to a Reuters report of economists. The survey revealed.
In domestic trade, Nifty’s public sector bank index and energy index closed with gains of 2.68 per cent and 1.09 per cent, respectively, while the IT index closed down 0.67 per cent.