The Indian benchmark indices recovered from early Wednesday losses, driven by gains in financial and auto stocks despite volatile trade amid ongoing India-Israel tensions that have been escalating. The missile attacks between the two countries have continued for a fifth day, with reports saying Israel's airstrikes damaged Iran’s underground Uranium facility at Natanz.
After hitting an intraday low of 81,237, the Sensex settled at 81,444.66, down by 138.64 points or 0.17 per cent. The Nifty50 closed at 24,812.05 levels, down by 41.35 points or 0.17 per cent.
Within the Sensex stocks, Power Grid, Kotak Bank, Infosys, Bajaj Finance, HDFC Bank, NTPC, and Axis Bank were trading in the red. In contrast, IndusInd Bank, HCL Tech, Sun Pharma, and Eternal opened with gains, rising up 4.4 per cent. On the sectoral front, Nifty IT, Metal, Oil & Gas Realty, Energy, PSU Bank, Media and FMCG settled in red. On the other hand, Nifty Consumer Durables, Auto and Bank settled with gains.
Among the Sensex constituents, 20 out of 30 stocks ended lower, led by TCS, Adani Ports, Hindustan Unilever, Nestle India, Bajaj Finserv and NTPC down by up to 1.6 per cent.
"The domestic market failed to maintain the opening gains as the continuing tensions in the Middle East & volatility in oil prices dragged the overall sentiment. However, auto and consumer discretionary gained in expectations of a demand revival,” said Vinod Nair, Head of Research, Geojit Investments Limited.
The Nifty Midcap100, and Nifty Smallcap100 indices settled lower by 0.46 per cent and 0.23 per cent, respectively.
Investors are awaiting the US Federal Reserve's policy decision that is due on Wednesday. Chair Jerome Powell’s commentary on potential rate cuts in the future and risks from the rising crude oil prices to the US economy are eagerly awaited.
India VIX, the fear index which gauges volatility in the markets, fell 0.89 per cent to settle at 14.27 points.
Meanwhile, in the world shares, S&P 500 futures were little changed. Nikkei 225 futures (OSE) rose 0.7 per cent, while Japan’s Topix rose 0.6 per cent.
Australia’s S&P/ASX 200 was little changed as well. Hong Kong’s Hang Seng fell 1.2 per cent, The Shanghai Composite fell 0.2 per cent, and Euro Stoxx 50 futures fell 0.4 per cent.
Foreign Institutional Investors (FIIs) bought equities worth ₹1,482.77 crore on Tuesday, according to exchange data. Domestic Institutional Investors (DIIs) also bought equities worth ₹8,207.19 crore in the previous trade.Global oil benchmark Brent crude dropped 1.35 per cent to USD 75.42 a barrel.
On Tuesday, the Sensex had declined 212.85 points or 0.26 per cent to settle at 81,583.30. The Nifty had dropped 93.10 points or 0.37 per cent to 24,853.40.
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