Equity Markets Recoup Early Losses on Late Recovery

Mumbai: After trading in the narrow range of 50 points for most of the session, BSE Sensex on Tuesday closed flat marginally in the green. Healthy buying was witnessd in IT and technology, media and entertainment (TECK) stocks.

BSE Sensex and NSE Nifty recouped early losses on late recovery in an otherwise choppy trading. The wider Nifty inched up 3.45 points or 0.04 per cent to 8,632.60 points. The market barometer 30-scrip Sensex closed at 27,990.21 points, up 4.67 points or 0.02 per cent from the previous close at 27,985.54 points.

Opened at 28,012.56 points, Sensex touched a high of 28,028.98 points and a low of 27,902.78 points during the intra-day trade. The BSE market breadth was minimally tilted in favour of the bears with 1,356 declines and 1,316 advances. On Monday, both the key Indian indices were suppressed by negative global cues and a weak rupee. The barometer index had receded by 91.46 points, or 0.33 per cent, while the NSE Nifty edged down 37.75 points, or 0.44 per cent.

A mixed trend on Asian bourses amid investors awaiting cues on whether the Federal Reserve would raise US interest rates this year kept investors edgy. Besides, a cautious approach by participants ahead of the August-month expiry in the derivatives segment on Thursday too influenced the domestic trading sentiment.

Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said: “Market remains range-bound with a positive bias due to a slight recovery in European markets. On the other hand, global market is shifting its focus to the possibility of a rate hike in the US by December 2016, which will cast a shadow on the domestic market. The domestic market is losing its trend to rate sensitive stocks post the announcement of the new RBI governor who is likely to maintain a cautious stance on interest rate cut.”

Source: IANS/ PTI