In an extremely volatile trading session, Indian stock markets ended marginally higher on Monday, driven by buying in information technology (IT) counters. The 30-share BSE Sensex increased by 77.05 points, or 0.10%, to settle at 75,315.04. During the day, the benchmark index tanked 1,134.78 points, or 1.50%, to an intraday low of 74,180.26, before recovering sharply in the latter half of the session.
Market Volatility and Recovery
The markets witnessed a sharp sell-off in early trade, tracking weak global cues and concerns over rising interest rates. However, value buying emerged at lower levels, particularly in IT stocks, which helped the indices recover from the day's lows. The broader Nifty 50 also staged a similar recovery, closing with marginal gains.
Sectoral Performance
Among sectoral indices, the Nifty IT index emerged as the top gainer, rising over 1.5% on the back of strong buying in heavyweight stocks like Infosys, TCS, and HCL Technologies. Other sectors such as pharma and FMCG also contributed to the positive close, while banking and auto stocks remained under pressure.
Market breadth was slightly negative, with more stocks declining than advancing on the BSE. However, the recovery in the final hours indicated resilience among investors.
Expert Views
According to market analysts, the volatility was expected given the uncertainty surrounding global economic data and domestic inflation figures. The IT sector's outperformance was attributed to expectations of strong earnings and a weak rupee, which benefits export-oriented companies.
Investors are now awaiting fresh triggers from upcoming corporate earnings and global central bank policies. The near-term trend is likely to remain range-bound with a positive bias, experts added.
