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Benchmark indices were trading lower during the afternoon on Tuesday amid volatility.
Market opeend on a negative note despite a sharp recovery in the US market. Indices slumped further during the early trade as selling pressure continued. Indices recovered from early losses but were trading lower during the afternoon, tracking losses in heavyweights such as HDFC and Reliance.
At 1:01 pm, the BSE Sensex was trading at 57,137.59, down 353.92 points or 0.62 per cent. It recorded an intraday high of 57,626.95 and a low of 56,409.63. The Nifty50 was trading at 17,075.85, down 73.25 points or 0.43 per cent. It recorded an intraday high of 17,201.45 and a low of 16,836.80.
Axis Bank, Bharti Airtel, State Bank of India, Coal India and UPL were the top gainers on the Nifty 50 while Bajaj Finserv, Titan, Asian Paints, HDFC and Wipro were the top laggards.
The volatility index softened 0.32 per cent to 22.75.
Analysts expect market volatility to continue ahead of US Federal Reserve’s two-day meet (Tuesday and Wednesday) and F&O settlement on Thursday.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “This excessive volatility is likely to continue for a few more days until clarity emerges out of the crucial Fed meet. The market is discounting a hawkish Fed and if the Fed sounds very hawkish and indicates four rate hikes in 2022 the market will again turn weak.”
“On the contrary, if the Fed sounds less hawkish than the market fears and indicates decline in inflation in the second half of 2022, the oversold markets are likely to stage a comeback and even a sharp rebound on short covering,” said Vijayakumar.
Bank stocks, metals shine
On the sectoral front, while IT, consumer durables, financial services and pharma dragged, metals and bank stocks gained focus.
Nifty Metal was up 0.42 per cent. Nifty Bank, Nifty PSU Bank and NIfty Private Bank were trading 0.64 per cent, 2.92 per cent and 0.65 percent higher, respectively.
Nifty IT was down 0.91 per cent. Nifty Consumer Durables was down 0.77 per cent while Nifty Financial Services was down 0.48 per cent. Nifty Pharma and Nifty Healthcare Index were down 0.19 per cent and 0.43 per cent, respectively.
Broader indices
Midcaps and smallcaps managed to recover from heavy losses in the past session.
Nifty Midcap 50 was up 0.20 per cent while nifty smallcap 50 was up 0.36 per cent. The S&P BSE Midcap was up 0.04 per cent while the S&P BSE smallcap was down 0.18 per cent.
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