Benchmark indices made a strong recovery in the afternoon session after opening in deep red on Monday, dragged by auto and IT stocks.
Market opened on a negative note amidst a sell-off across global markets and dragged further in the morning, owing to losses in heavyweight financials stocks. Indices recovered from the intraday losses but remained in the red.
At 1 pm, the BSE Sensex recovered from the intra-day low of 51,740.19 to trade at 52,255.81, down 88.64 points or 0.17 per cent. It hit an intra-day high of 52,269.33. The Nifty 50 was ruling at 15,655.80, down 27.55 points or 0.18 per cent. It hit an intra-day high of 15,658.55 and a low of 15,505.65.
Adani Ports, NTPC, UltraTech Cements, Hindustan Unilever and Asian Paints were the top gainers on the Nifty 50 while UPL, Hindalco, Tata Motors, M&M and Wipro were the top laggards.
Likhita Chepa, Senior Research Analyst, CapitalVia Global Research Ltd, said, “Indian market indices pared some losses but remained in negative territory in morning session. Sentiments remained negative as Care Ratings warned that credit growth for the current financial year (FY22) is projected to stay in the low double digits. Losses have been limited as a UN report projected that India received $64 billion in foreign direct investment in 2020, making it the world’s fifth-largest beneficiary of inflows.”
“After comments from Federal Reserve that the US central bank would raise interest rates sooner than previously predicted frightened investors, US markets closed substantially lower on Friday, with the Dow and S&P 500 having their worst weekly performances in months. Asian markets were trading in the negative territory following the negative sentiments in the global markets,” added Chepa.
IT, Auto drag
On the sectoral front, a majority of indices were in the red. IT and Auto tracked losses while Realty and PSU Bank stocks gained.
Nifty IT was down 0.54 per cent while Nifty Auto was down 0.61 per cent. Financials also lagged behind. Nifty Bank and Nifty Financial Services were down 0.21 per cent and 0.19 per cent , respectively.
Meanwhile, Nifty PSU Bank was up 0.51 per cent while Nifty Realty was up 1.12 per cent.
As for broader indices, Nifty Midcap 50 was up 0.09 per cent while Nifty Smallcap 50 was down 0.19 per cent.
The S&P BSE Midcap was up 0.30 per cent while the S&P BSE Smallcap was up 0.41 per cent.
Notably, amid global sell off the volatility index rose 6.69 per cent to 15.79.