Market Today: Equity markets were volatile on Tuesday as investors were stuck between ‘buy on dips’ and ‘sell the rally’ strategies.
The S&P BSE Sensex ended the session 483 points, or 0.68 per cent, higher at 71,555 levels, while the Nifty50 shut shop with gains of 127 points, or 0.59 per cent, at 21,743 levels.
ICICI Bank, Axis Bank, Kotak Bank, Wipro, NTPC, IndusInd Bank, and Reliance Industries were the top Sensex gainers, rising in the range of 0.7 per cent to 2.3 per cent.
In the broader markets, indices swung between zones with the BSE MidCap and SmallCap indices, eventually, closing 0.6 per cent and 0.18 per cent higher, respectively.
Among sectors, the Nifty Metal index dropped over 1.9 per cent, followed by the Nifty Media index (down 0.2 per cent). On the upside, the Nifty Bank, Financial Services, PSU Bank, and Private Bank indices added over 1 per cent each.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services says, “The dominant trigger pushing the global equity markets up or down this year has been the economic data from the mother market US. This data has not been consistent and, therefore, the markets have been volatile responding to alternate bouts of positive and negative news. The disinflation trend pushed the markets up while data indicating a strong economy and tight labour market pulled the markets down. This see-saw movement appears likely to persist for some more time. The latest negative factor, from the market perspective, is the Fed chief Powell’s comment that “the ultimate level of interest rate is likely to be higher than previously anticipated”. So, markets are pricing in a 50bp rate hike in the next Fed meeting on March 21-22. In the near-term investors may adopt a twin strategy of opting for attractive fixed income returns with incremental investable funds while continuing to buy high quality stocks on market weakness”
Global Cues
Asian stocks inched higher and the dollar held steady on Tuesday ahead of a key US inflation report that could help shape the Federal Reserve’s rates outlook and determine the timing of interest rate cuts.
Tokyo stocks opened higher on Tuesday after a long weekend following gains on Wall Street.The benchmark Nikkei 225 index was up 0.99 per cent, or 365.64 points, at 37,263.06 in early trade, while the broader Topix index added 0.88 per cent, or 22.46 points, to 2,580.34.
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