Markets snap 3-day losing streak; benchmarks tick higher

Mumbai: Snapping their three-day losing run, market benchmarks ticked higher after a see-saw session on Tuesday on fag-end buying in energy, metal and finance counters amid a firm trend in global markets.

Covering-up of short positions by bears also supported the late recovery in stocks, traders said.

After swinging between gains and losses, the 30-share BSE Sensex finally closed 187.39 points or 0.33 per cent higher at 57,808.58. Similarly, the broader NSE Nifty climbed 53.15 points or 0.31 per cent to 17,266.75.

Tata Steel topped the Sensex gainers' chart with a jump of 3.10 per cent, followed by Bajaj Finance, Bajaj Finserv, Reliance Industries, Titan, Asian Paints and Axis Bank.

In contrast, PowerGrid, TCS, UltraTech Cement, Tech Mahindra, Kotak Bank, L&T and HDFC twins were among the losers, shedding as much as 1.66 per cent.

Of the Sensex constituents, 19 shares closed higher while 11 were in the red.

"Indian equities were highly volatile today, swaying between gains and losses while managing to close on a positive note. Selling pressure from FIIs was countered by bargain hunting by domestic investors.

"European shares advanced over ECB President's comments stating that there are lower chances of a measurable tightening of monetary policy, which helped in comforting global investors," said Vinod Nair, Head of Research at Geojit Financial Services.

Meanwhile, the Reserve Bank's rate-setting panel began its three-day deliberations on Tuesday to decide the next monetary policy in the backdrop of Budget 2022-23, inflationary concerns and evolving geopolitical situation.

S Ranganathan, Head of Research at LKP Securities, said, "As policymakers face one of the fastest pace of price increases in the developed markets, global stock markets are facing a challenge in pricing the likely actions by central bankers."

"Back home, the Nifty opened extremely weak and drifted closer to 17K levels on geopolitical worries and soaring oil prices with passive emerging market funds booking profits. As bond yields price in ahead of the RBI policy, supply of paper ahead of a mega primary market offering kept investors circumspect though indices managed to recover substantial lost ground to end in the green," he added.

Sector-wise, BSE metal, energy, bankex, auto and finance spurted up to 1.06 per cent, while utilities, power, capital goods, realty and industrials declined as much as 2.82 per cent.

The BSE midcap and smallcap indices lost up to 1.40 per cent.

World stocks were largely positive amid strong corporate results despite concerns over policy tightening and inflationary pressures.

Elsewhere in Asia, bourses in Tokyo, Shanghai and Seoul ended in the positive territory, while Hong Kong was in the red.

Stock exchanges in Europe were trading with significant gains in mid-session deals.

Meanwhile, international oil benchmark Brent crude slipped 0.81 per cent to USD 91.94 per barrel.

The rupee declined 5 paise to close at 74.74 against the US dollar on Tuesday, tracking the strength of the American currency in the overseas market and elevated crude oil prices.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 1,157.23 crore on Monday, according to stock exchange data.