Sensex sheds over 900-pt rebound, ends in red

The domestic market tried to rebound mirroring the Asian markets. However, momentum was short-lived and closed below the threshold level of 24,000. Investors are watching the appreciating Yen, weak US economic data, and rising geopolitical tensions, said Vinod Nair, head (research), Geojit Financial Services

Volatile Session:

♦ BSE Sensex settled at 78,593.07, down 166.33 pts or 0.21%

♦ 17 of Sensex-30 declined

♦ Sensex opened higher, rallied 1,092.68 pts or 1.38% to a high of 79,852.08

♦ BSE barometer later hit a low of 78,496.57

♦ NSE Nifty declined 63.05 pts or 0.26% to 23,992.55

♦ Nifty surged 327 pts or 1.35% to 24,382.60

♦ FIIs offloaded equities worth Rs10,073.75 cr on Mon

♦ Asian mkts recovered

Mumbai: Stock markets surrendered early gains and settled lower in volatile trade on Tuesday with BSE Sensex losing 166 points and Nifty ending below the 24,000 level due to fag-end selling in banking and telecom stocks.

Falling for the third straight day, the 30-share BSE Sensex settled at 78,593.07, down 166.33 points or 0.21 per cent, as 17 of its constituents declined and 13 gained. The index opened sharply higher and rallied further 1,092.68 points or 1.38 per cent to a high of 79,852.08 on value-buying by investors driven by a rebound in Japanese and other Asian stocks.

However, the barometer faltered later and hit a low of 78,496.57 as banking shares came under selling pressure ahead of the RBI policy decision on Thursday. Similarly, the NSE Nifty declined 63.05 points or 0.26 per cent to settle below the 24,000 level at 23,992.55. The index surged 327 points or 1.35 per cent to 24,382.60 in intra-day trade but failed to hold onto gains. Sensex and Nifty has declined for the third straight day, losing more than 4 per cent as weak jobs data fanned fears of possible recession in the US market. The market capitalization (Mcap) of NSE-listed companies declined to Rs435.80 lakh crore or $5.19 trn.

“The domestic market tried to rebound mirroring the Asian markets. However, momentum was short-lived and closed below the threshold level of 24,000. Investors are watching the appreciating Yen, weak US economic data, and rising geopolitical tensions,” said Vinod Nair, head (research), Geojit Financial Services.

In the broader market, the BSE midcap gauge declined 0.71 per cent and smallcap index went lower by 0.57 per cent.

“Indian markets started the day on a positive note Tuesday, buoyed by a rebound in other Asian markets, notably Japan, which had experienced their worst downturn since 2008. However, the momentum faded, and about an hour and a half before the close, the markets gave up their gains,” added Avdhut Bagkar, analyst (technical and derivatives), StoxBox.

“The US recession has a direct impact on our IT / Pharma sectors and remittances. We expect markets to remain volatile due to global uncertainties,” Nilesh Shah, MD, Kotak Mahindra Asset Management Co Ltd.

Among the indices, telecommunication dropped 1.15 per cent, financial services by 1.03 per cent, consumer durables by 0.92 per cent, bankex by 0.76 per cent and consumer discretionary by 0.48 per cent.

Suman Bannerjee, CIO, Hedonova, said: “Amid persistent inflationary pressures, particularly due to rising food prices, the RBI is expected to maintain the current benchmark rate. This cautious approach is designed to balance economic growth with price stability.”