After a steep fall on Monday, the Indian markets ended with modest gains on Tuesday amid some volatility ahead of the F&O expiry. The key stock indices started off with smart gains despite weak cues from the US and European equity markets. However, the Asian indices recovered from the previous session's drubbing and European markets too managed to break the recent sequence of losses. As a result, the sentiment on Indian bourses too improved.
FMCG, Realty and PSU stocks were among the major laggards. On the other hand, Capital Goods, Consumer Durables and Banking stocks were in demand.
Domestic headwinds like inflation and policy stalemate on key issues continue to haunt the Indian markets. Technically, the NSE Nifty could find meaningful support around the 5340 levels. While on the upside the 5490 levels could be the near term resistance for the index.
The fact that the crude oil has softened in recent days also supported the Indian markets. Results from the likes of L&T, Bajaj Auto, BHEL, Gail and ITC have been well received by the markets as well.
"Volatility could escalate ahead of the F&O expiry. Overall mood will hinge on upcoming results, FII flows, possible policy announcement, monsoon and of course overseas markets.Safety of one’s portfolio should be top priority. So, avoid undue risk taking.
There could be a minor bounce after a steep selloff but don’t aggressively buy into it as there could be further weakness. One will get opportunities in the coming days to pick up quality stocks for medium- to long-term perspective," says Amar Ambani, Head of Research (India Private Clients) - IIFL.
The BSE Sensex ended at 18,011 adding 19 points. It had earlier touched a day's high of 18,110 and a day's low of 17,933. It opened at 18,016. The NSE Nifty closed at 5,398 adding 12 points.
The European markets were trading in the green, the FTSE index was up 1%, CAC index was up 1.3% and DAX index was up 1.4%.
Outside the index, the major gainers were Patni, Shriram Trans, Jub Food, Biocon and Canara Bank. Among the major loses were DB Realty, Bharat Forge, PFC and Tata Global.
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