Equity Benchmarks End Flat In Volatile Session
Indian equity benchmarks ended flat with marginal losses in Tuesday’s volatile session. The benchmarks were off to a positive start in early trade and were in green for most of the day. However, selling in the last-hour erased all marginal intraday gains.
Investors have their eyes set on the outcome of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting where a 50-bps rate hike is expected.
At close, the Sensex was down 37.70 points or 0.07 percent at 57,107.52, and the Nifty was down 8.90 points or 0.05 percent at 17,007.40.
“The benchmark indices witnessed a volatile trading session; the nifty ends 9 points lower while the Sensex was down by 37 points. Among Sectors, profit booking continued in Metal and Financial stocks, both indices registered profit booking at higher levels. whereas, some buying was seen in selective Pharma and IT stocks,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the Nifty Cipla, Tata Consumer Products, BPCL, Power Grid Corporation and Shree Cements were among the top gainers while, Hero MotoCorp, Adani Ports, Titan Company, Tata Steel and Kotak Mahindra Bank were among top losers.
Nifty auto, bank and metal indices lost 0.5 percent each, while buying was seen in pharma, FMCG and IT names.
Provisional data from the National Stock Exchange revealed that Foreign institutional investors sold net 51.01 billion Indian rupees domestic equities on Monday.
“Volatility was the hallmark of today’s trade as on backdrop was the risk of recession in financial markets across the globe. The street suspects that the Fed will move so aggressively as to cause a recession. The other biggest headwind that markets across the globe face is inflation. Traders will now spy with one big eye on how much the RBI will tighten monetary policy—and raise interest in its meeting on Friday to tackle inflation in the remaining year,” said Prashant Tapse, - Research Analyst, Senior VP (Research), Mehta Equities.
“Technically, the biggest support to watch on Nifty will be at 16,907. As long as 16,907 support is held, there is a bright chance that Nifty could bounce to 17,347 and then at the 17,727 mark,” Tapse added.
