Markets turn flat in highly volatile trade

Morning Market Updates

Equity benchmark indices rose in early trade on Tuesday but later traded flat due to volatile market conditions and foreign fund outflows. In early trade, the 30-share BSE Sensex increased by 46.5 points to reach 81,402.34, while the NSE Nifty went up by 13.15 points to 24,849.25. However, both indices turned flat later. Among the gainers in the Sensex firms were PowerGrid Corp, NTPC, Tata Motors, Asian Paints, Titan, Bajaj Finserv, and Hindustan Unilever. On the other hand, UltraTech Cement, Sun Pharmaceuticals, Mahindra and Mahindra, Tata Consultancy Services, Adani Ports and Special Economic Zone, and Nestle India were among the laggards.

In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong reported lower trading. The US markets saw modest gains and closed higher on Monday. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that sustained capital flows into mutual funds and retail investor enthusiasm will keep the market resilient. However, concerns have been raised regarding the elevated valuations, particularly in the broader market.

High-quality stocks with good earnings visibility are showing strength due to institutional buying. The Federal Open Market Committee (FOMC) meeting on Wednesday and the commentary from the US Federal Reserve chief Jerome Powell will be closely watched by market participants for interest rate cut clues. Additionally, the global oil benchmark Brent crude declined by 0.41 per cent to USD 79.45 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,474.54 crore on Monday, as per exchange data.

On the same day, the 30-share BSE Sensex closed higher by 23.12 points or 0.03 per cent at 81,355.84, reaching its all-time closing high, while the NSE Nifty ended up marginally by 1.25 points or 0.01 per cent at an all-time closing high of 24,836.10. It surged to a fresh lifetime peak of 24,999.75, increasing by 164.9 points or 0.66 per cent during the day.