Mumbai– Value buying helped India’s key stock indices — S&P BSE Sensex and NSE Nifty50 — snap a five-day losing streak on Tuesday despite massive selling by FIIs.
As per the data, FIIs sold Rs 7,094.48 crore on BSE, NSE and MSEI in the capital market segment. The low-level buying was triggered after a sell-off of more than 2,600 points in the last five trading sessions.
At the end of the day, Sensex settled 0.6 per cent or 366 points higher at 57,858 points, while Nifty was 0.8 per cent or 128 points up at 17,277 points.
In the initial trade, the two key domestic indices opened in negative territory in line with global peers.
Globally, Asian equity markets were hit on Tuesday as growing fears of a possible Russian invasion of Ukraine and inflation-fighting measures from the US Federal Reserve dampened investors’ risk appetite.
European shares kicked off the session on the positive side but caution over the Fed and Ukraine risks was palpable, making for some choppy moves in the first hour of trading.
On the domestic front, volumes on the NSE were higher than the recent average. Among stocks, power, bank, auto and telecom indices rose the most whereas IT and consumer durables fell the most.
“Nifty recovered smartly from the opening lows to end the day in the positive. It has recovered from an important support of around 16,800,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
“After the trading holiday on January 26, Indian markets will react to the outcome of the US Fed meet due on Wednesday evening. While some initial weakness on January 27 cannot be ruled out, Nifty seems to have made a near term bottom on January 25,” he added.
According to Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services: “Strong results from index heavyweights — Axis Bank and Maruti Suzuki — also added to the positive sentiments on Tuesday.
“Strong quarterly results by banking majors like ICICI, Axis, Federal and Bandhan supported the private banking space. Global cues, quarterly results and the upcoming Union Budget would be some of the key factors driving the market direction in the near term.”
Vinod Nair, Head of Research at Geojit Financial Services, said: “After a week-long consolidation, domestic indices took a breather supported by low-level buying. Western markets also supported, staging recovery following correction in oil markets, and as uncertainties over Fed policy and geopolitical tensions eased.
“However, volatility is expected to linger as investors await the Fed’s final policy statement, providing clarity on the timeline of rate hikes. If the statement is hawkish as anticipated, we cannot ignore a bounce in the market.” (IANS)