Indian stock markets shook off early losses to stage a comeback on Monday, keeping investors on their toes. The key indices Sensex and Nifty erased their opening declines to end the morning session in positive territory.
When trading commenced, the markets had opened on a weaker note taking cues from global peers. Sensex dropped over 77 points within minutes of the opening bell, while Nifty also dipped into the red. However, value buying soon emerged across sectors, helping the markets recover ground.
Some of the sectors driving the recovery included automobiles and metals. The Nifty Auto index was one of the top gainers among sectoral indices, rising over 1%. Metal stocks also saw demand with Nifty Metal index adding 0.7% in morning trade. Corporates from these segments such as Tata Steel, JSW Steel and Mahindra & Mahindra saw their shares in high demand.
While volatility prevailed on Dalal Street, cues from other Asian markets provided some relief. Key indices in Japan, China and South Korea started the week on a positive note aiding sentiment. Back home, midcap and smallcap stocks joined in the rebound though sectors like IT and FMCG faced selling pressure.
Amid the fluctuations in the market, investors kept a close watch on other market determining factors. The rupee opened marginally stronger against the US dollar at the interbank exchange. Crude oil prices ticked upwards after last week’s gains on geopolitical worries. Gold price movements were also on the radar of commodity traders.
With uncertainty looming over various macros, volatility is expected to continue dominating Dalal Street. Investors remain on tenterhooks tracking developments around the upcoming Fed rate decision and key domestic events like the general elections. Stay tuned for more updates throughout the day’s trading session!
