Mumbai: Indian markets swung to volatile extremes in the session on Tuesday. The second day after India's second surgical strike saw many traders concerned of a military retaliation from Pakistan. As a result market action was largely subdued.
Deepak Jasani, Head of Retail Research for HDFC Securities was quoted as saying, "Traders and investors may show some caution for another 1-2 days and wait for any retaliation or escalation."
There were expectations of positive cues from US Federal Reserve Chairman Jerome Powell's speech. However his talk did not excite markets much. Both Asian and US stocks did not perform as expected. US markets ended lower with market sentiment being dented by weakening economic data and corporate earnings.
Powell reiterated the Fed's patient stance on further interest rate hikes, saying it's currently "a good time to be patient and watch and wait and see" how economic situation evolves.
Yet he noted that there had been some "crosscurrents and conflicting signals," although the central bank viewed "current economic conditions as healthy and the economic outlook as favourable."
The volatility for Indian markets was visible with the way the NSE's volatility index- VIX performed. VIX was up by 12.24% suggesting extreme volatility.
The thirty scrip sensitive S&P BSE Sensex ended the day on 35905.43, down by 68.28 points or 0.19%. On the broader side, most indices except for the Midcap Select (up by 0.69%) and Small Select (up by 0.17%) were down in a range of 0.09-0.21%.
BSE Sectoral indices such as BSE-FMCG (down by 0.35%), BSE-TECK (down by 0.38%), BSE-METAL (down by 0.42%), BSE-BANK (down by 0.44%), BSE-POWER (down by 0.45%) were among the losing sectoral indices. BSE Consumer Goods index gained 1.13% in the trading session.
Overall the market trend was largely bearish with a total of 1161 scrips advancing while 1372 stocks declining. 37 stocks posted their 52 week highs while 130 reported their 52 week lows.
On the Sensex, gainers included Bharti Airtel (up by 2.43%), Bajaj Auto (up by 2.09%), Larsen & Toubro (up by 1.49%), Sun Pharma(up by 1.39%), Axis Bank (up by 1.09%), and TCS (up by 1.05%). The losers on the Sensex include, NTPC (down by 1.17%), Kotak Mahindra Bank (down by 1.61%), Hindustan Unilever (down by 1.77%), Vedanta (down by 2.92%), and Tata Motors (down by 3.01%).
On the National Stock Exchange, the 50 scrip sensitive Nifty was down by 28.65 points or 0.26% at 10806.65. Nifty indices such as PSU Bank, Pharma and Auto stocks gained in the range of 0.45-0.52% during the session, while Nifty Media, private Bank, and IT were among the losing indices.
Among specific stocks, Vedanta Limited shared with exchange houses that its ratings had been revised by Indiaratings. The rating agency revised its outlook from Positive to Stable on term loans of Vedanta Limited. The company shared a press release with BSE.
At the time of close of trade hours of the BSE, the US Dollar Currency index was down by 0.001% at 95.93. Dollar was trading in a range of Rs 70.78 - 71.34. In spot markets, USD/INR had gained by 0.11%.
For Wednesday, all eyes are focussed on an interaction between US President Donald Trump and North Korea's Supreme leader Kim Jong-Un. There is hope that the US-administration may succeed in pushing North Korea to drop its nuke program.
from Sify.com
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