Mumbai : Benchmark Indian indices broke a four-day losing streak to close in the green on Tuesday. Volatility continued and other Asian markets remained weak, but a rebound in global indices helped the markets during the latter half of the day. There was some selective buying in certain sectors and stocks, leading to gains in gains. Favorable exit poll results in the domestic sector have also boosted domestic sentiment.
However, experts caution and expect volatility to continue amid higher crude oil prices, unfavorable currency movement, geopolitical uncertainties and continued selling by foreign portfolio investors (FPIs).
Nifty and Sensex ended the day with gains of 0.95% and 1.10% respectively.
Asian markets such as Nikkei, Taiwan, Shanghai Composite, Jakarta Composite and Hang Seng closed down 0.8- 2.35% on Tuesday.
Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd, said, “Indian markets continued to be volatile along with global equities after Russia and Ukraine failed to yield any significant results in the third round of talks.” Khemka attributed the rebound and relief in the second half of the day to short covering in the domestic market and recovery in global markets. “Domestic indices reversed their trend and traded with gains led by export-oriented sectors such as pharma and IT, which saw buying interest in the form of rupee. Vinod Nair, Head of Research, Geojit Financial Services said, fell to a record low.” Nair said favorable exit poll results for the assembly elections and lower level of buying seen in mid and small caps also added to the optimism in the domestic market.
FPIs continue to be net sellers with a global risk-off sentiment. FII has sold equity value 99,670.7 crore equity during 2022 as on 7 March. Domestic Institutional Investors (DIIs) bought shares of 81,943.43 crore during 2022. Provisional data for March 8 on BSE shows selling of FIIs 8,142.60 crore while DII bought equity worth Rs. 6,489.59 crores.
Experts said the selling of FIIs is likely to continue. The volume is also high. Deepak Jasani, Head of Retail Research, HDFC Securities Ltd, said, “If some stability in the global markets persists, FII selling may come down. The outflow and redemption were due to an expected rate hike by the US Federal Reserve and concerns about the withdrawal of economic stimulus. by global funds in the past few months.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!