Home / Business / Sensex, Nifty snap two-day fall as bank, auto shares shine

Sensex, Nifty snap two-day fall as bank, auto shares shine

Mahindra & Mahindra, Bajaj Finserv, Titan, Tata Steel, State Bank of India, Kotak Mahindra Bank, Sun Pharma and IndusInd Bank advanced
Representational image.
Representational image.

PTI   |   Mumbai   |   Published 23.08.22, 05:29 PM

Benchmark BSE Sensex and Nifty snapped their two-day losing streak to close nearly half a per cent higher in a volatile session on Tuesday following gains in banking, metal and auto stocks.

The 30-share BSE Sensex rebounded more than 1,000 points from the day's low before settling at 59,031.30, showing net gains of 257.43 points or 0.44 per cent. As many as 21 of Sensex shares closed in the green while nine declined.

The broader NSE Nifty rose by 86.80 points or 0.50 per cent to settle at 17,577.50 as 42 of its constituents advanced.

The key indices opened lower due to losses in IT and FMCG shares as uncertainty prevailed over the interest rate hikes by the US Federal Reserve to control inflation. Losses in Asian markets also hit the sentiment.

However, late recovery in banking, metal and auto shares helped the indices recover from the lows and snap the two-day losing streak.

From the Sensex pack, Mahindra & Mahindra rose the most by 3.78 per cent. Bajaj Finserv rose by 2.75 per cent, Titan by 2.6 per cent, Tata Steel by 2.38 per cent, State Bank of India by 2.12 per cent. Kotak Mahindra Bank, Sun Pharma and IndusInd Bank also advanced.

On the other hand, Tata Consultancy Services, Infosys, HCL Technologies, Hindustan Unilever, Tech Mahindra, Wipro and HDFC Bank were the major laggards.

"Markets witnessed heightened volatility as the Sensex gyrated more than 1,000 points intra-day before late buying in banking, auto, metal & realty stocks aided recovery. Markets may witness bouts of volatility in coming days as global factors will continue to keep investors on tenterhooks," Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said.

Fear of uncertainty is visible in the market as they move with high volatility, led by weak signals from global peers, while a stronger domestic economy is providing some comfort, said Vinod Nair, Head of Research at Geojit Financial Services.

Global markets were under pressure with a spike in European energy prices and rate hike fears ahead of the Jackson Hole gathering, Nair said.

On the domestic front, gains in banks, autos and metals were countered by selling in IT stocks as majors are scaling down variable pay due to margin pressure, Nair added.

In the broader market, the BSE midcap gauge climbed 1.03 per cent and smallcap index advanced 0.78 per cent.

Among the BSE sectoral indices, metal advanced 2.08 per cent, followed by auto (1.70 per cent), consumer durables (1.44 per cent), basic materials (1.28 per cent), energy (1.28 per cent) and telecom (1.26 per cent).

IT and teck were the laggards.

In Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong ended lower.

Stock markets in Europe were trading on a mixed note during mid-session deals. Wall Street had ended sharply lower on Monday.

Meanwhile, the international oil benchmark Brent crude was trading 1.43 per cent higher at USD 97.85 per barrel.

Foreign Institutional Investors (FIIs) offloaded shares worth Rs 453.77 crore on Monday, according to exchange data.

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