However, gains achieved through the first-half of the day were largely erased in the last hour of trading due to escalation of tensions between Ukraine and Russia, with analysts saying any build-up in the conflict could lead the markets lower.
The NSE’s Nifty rose 64.7 points, or 0.28%, to close at 23,518.5. BSE’s Sensex rose 239.3 points or 0.31% to end at 77,578.3.
The Nifty was up as much as 1.39% and Sensex had gained 1.43% earlier in the day.
After Ukraine’s air strike on Russia, the European markets opened lower on Tuesday.”Nifty failed to sustain above the 200-day average (23,556) and the global geopolitical concerns of Russia-Ukraine also weighed,” said Vikas Jain, head of research at Reliance Securities. “We believe the market will focus on the outcome of Maharashtra elections over the next few days, and any positive favour with a clear majority by the existing party will trigger a sharp move.”Tuesday’s gains were led by auto, pharmaceutical, realty and consumer durables stocks.
Jain said that the final weekly expiry of FinNifty contracts also contributed to the market decline, particularly impacting insurance-related stocks, which were already facing selling pressure.
FPIs continued selling and net sold shares worth βΉ3,412 crore on Tuesday. Domestic institutions were buyers to the tune of βΉ2,784 crore.
Technical analysts say Nifty would trade in a range-bound manner. “The Nifty is expected to trade in the range of 23,200-23,800 in this week, and any move above this range could fuel a short-covering rally,” said Dharmesh Shah, head of technical research at ICICI Direct.
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