MUMBAI: India's key equity indices made slight gains during Tuesday's trade session as sentiments were buoyed on the back of global cues as well as value buying opportunities. However, rising COVID cases, as well as partial travel restrictions, capped gains.
Equity markets had a gap-up opening but witnessed huge volatility before closing with marginal gains. Globally, Asian stock markets were mostly lower on Tuesday amid cautious trading, as worries about rising coronavirus cases and extension of lockdown restrictions are weighing on the markets.
Similarly, European stocks played catch-up with gains in Asia and Wall Street overnight in their first trading session since the Easter holiday. Among sectors, pharma, metals, realty, and FMCG rose the most while bank and media fell the most.
The S&P BSE Sensex closed 42.07 points, or 0.09 per cent higher, at 49,201.39 points from the previous close.
The NSE Nifty50 on the National Stock Exchange ended the trade session at 14,683.50, up by 45.70 points, or 0.31 per cent, from its previous close.
"Nifty has formed an inside day compared to the previous session's high-low, suggesting no fresh directional clues. The intraday volatility has however become smaller which is a good sign," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"Greater participation of small and midcaps has resulted in a healthy advance decline ratio. 14,574-14,876 could be the band for the Nifty for the near term."
Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "Global cues were positive on the back of strong economic data from US and China. However, tightening of monetary policy by China, dented sentiments somewhat with regards to optimism for a strong economic recovery."
"Domestically, Nifty ended flat, dragged down by banking stocks. More states like Delhi, Gujarat followed Maharashtra and tightened measures to curb rising COVID which is worrying the market. Concerns over the economic impact of this second wave led investors to book profit intermittently." Vinod Nair, Head of Research at Geojit Financial Services, said: "Market is attempting a strong pullback from yesterday's low as the announced lockdown is unlikely to really dampen the economic growth trajectory. There is a great hope that economic restrictions, summer season and vaccination will lead to a fall in COVID cases."
"The pullback is also supported by a strong rally happening in global markets. Domestic market is awaiting the RBI policy with an expectation to maintain the status quo, future commentary on growth and inflation will be highly viewed with an optimistic outlook on FY22." (IANS)
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