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Indian stock markets recouped most of the intra-day losses but ended marginally in the red on Monday. S&P BSE Sensex recovered more than 500 points from opening lows, ended at 49,771. The Nifty50 on the other hand, ended at 14,736.

Nifty Bank was off lows towards close but ended with cuts of over 1% at 33,603.  Nifty Financial Services, PSU Bank and Private Bank indices also fell over a per cent.

On the other hand, Nifty IT index was top gainer, the index ended 1.85% decline. FMCG, pharma and metal shares also witnessed buying interest.

Midcap and smallcap indices on the other hand bucked the trend and managed to close in the green.

Intense selling pressure in banking heavyweights like HDFC Bank, ICICI Bank, IndusInd Bank and Axis Bank pulled down indices. Analysts also point at how the rising Covid-19 cases also dampened investor sentiment. India reported 46,951 fresh coronavirus cases in the last 24 hours – biggest single-day jump since November 7.

Vinod Nair, Head of Research at Geojit Financial Services, “Fear of the second wave of Covid-19, elevated bond yield and weak global cues is weighing on the domestic market. The expectation of rise in inflation is also impacting the market. The market has marched well in anticipation of faster economic recovery and is taking a breather given tightening restrictions & an increase in future interest rate, spiking fear of a slower recovery”

On the Nifty50, IndusInd Bank, PowerGrid Corporation, ICICI Bank, Tata Motors and HDFC Bank were the top losers, while Adani Ports & SEZ, Britannia Industries, TCS, Tech Mahindra and Sun Pharmaceutical Industries were the top gainers.

Adani Green Energy share price hit a record high of Rs 1,251 apiece, rising 5% on BSE on Monday. The shares were locked in a 5% circuit in today’s session after the company received a Letter of Award (LOA) for a 300 MW Wind project.

Here’s how experts see markets trading on Tuesday

Ajit Mishra, VP – Research, Religare Broking

Markets ended almost unchanged in a volatile trading session, in continuation to the prevailing consolidation phase. The benchmark traded with a negative bias for most of the session on the back of subdued global cues. However, rebound in the select index majors in the last hour led the Nifty to recoup most of its losses and end on a flat note at 14,736 levels.

We expect the current consolidation to continue in the index, in absence of any major trigger. Apart from the global cues, rising COVID cases in India would continue to remain the key concern. We have been observing underperformance from the banking pack, which is hurting the prospects for sustainable directional move. It’s prudent to limit leveraged positions in the current scenario and let the market stabilise.