Nifty holds 14,700 in a volatile session

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After opening a strong footing Indian benchmark indices came-off from day’s high in mid-afternoon trade amid significant volatility. BSE Sensex reclaimed surpassed 50,000-mark hitting an intraday high of 50,327; while the Nifty50 index also surpassed the 14,800-mark.

At close, the Sensex was up 7 points or 0.01% at 49,751, and the Nifty was up 32 points or 0.22% at 14,707. Buyers outpaced sellers, as about 1690 shares have advanced, 1231 shares declined, and 160 shares were unchanged on the BSE.

Tata Steel, Tata Motors, Hindalco, ONGC & UPL all closed with gains of 5%. On the downside, Kotak Mahindra Bank, Maruti Suzuki, Bajaj Auto, Adani Ports and Divis Labs lost anywhere between 1-4%.

On the sectoral front, Nifty Metal rose 3.89% followed by Nifty Realty was up 2.70% and Nifty Auto & FMCG closed the day’s trade with gains of 0.77% & 0.41% respectively. Whereas Nifty Bank lost on 0.40%.

Domestic equities witnessed roller coaster ride amid high volatility, with metals and realty indices recording substantial gains, said Binod Modi, Head – Strategy at Reliance Securities.

“Concerns pertaining to increase in bond yields and higher commodity prices dented investors’ sentiments in the last couple of days. However, the underlying strength of the economy and market remains intact,” he added.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.98%. The S&P BSE Small-Cap index gained 0.74%.

Global markets

European stocks declined across the board while most Asian shares advanced on Tuesday. Markets in Japan are shut today for a holiday.

Policymakers are reportedly becoming concerned about the rapid rise in bond yields. European Central Bank President Christine Lagarde has reportedly said that her institution is closely monitoring the market for government bonds.

In US, the S&P 500 and Nasdaq closed lower on Monday as climbing Treasury yields and prospects of rising inflation triggered valuation concerns, hitting shares of high-flying growth companies.

Meanwhile, the global oil benchmark Brent crude was trading 0.81 per cent higher at USD 64.88 per barrel.