Equity markets opened in the green on Tuesday, recovering from their steepest single-day fall since October 3. The Sensex opened at 78,019.80, up from its previous close of 77,964.99, and is currently trading at 78,063.27, gaining 98.28 points or 0.13 per cent.
The Nifty opened higher at 23,679.90 compared to its previous close of 23,616.05 and is now at 23,671.55, up by 55.50 points or 0.24 per cent as of 9.50 AM.
ONGC emerged as the top gainer on the NSE, surging 3.13 per cent, followed by Titan (+2.15 per cent), Tata Consumer Products (+1.50 per cent), Adani Enterprises (+1.32 per cent), and Britannia (+1.23 per cent).
On the flip side, Apollo Hospitals led the losses, declining 0.98 per cent, followed by TCS (-0.79 per cent), Bajaj Auto (-0.59 per cent), Wipro (-0.58 per cent), and HCL Tech (-0.52 per cent).
Monday’s market decline was primarily attributed to concerns over the human metapneumovirus (HMPV) cases detected in Karnataka, coupled with persistent selling by Foreign Institutional Investors (FIIs), who offloaded shares worth ₹2,575 crore. However, Domestic Institutional Investors (DIIs) provided support by purchasing equities worth ₹5,749 crore.
“The 1.6 per cent cut in Nifty yesterday appears to be an overreaction to the HMPV virus concerns,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added, “Clarification by the government that there is no room for undue concern from the virus, which is not new, can facilitate a rebound in the market, led by momentum stocks.”
Banking stocks faced significant pressure on Monday, with HDFC Bank dropping 2.21 per cent, Union Bank plunging 7.5 per cent, Punjab National Bank falling 4.38 per cent, and Bank of Baroda declining 5.66 per cent. The sector’s weakness was attributed to concerns over tightening liquidity and slowing deposit growth.
The market sentiment was also impacted by broader macroeconomic factors, including the rupee touching a record low of 85.85 against the dollar and oil prices hovering around $74.75 per barrel. Additionally, elevated US Treasury yields continued to influence investor behavior.
On the technical front, Akshay Chinchalkar, Head of Research at Axis Securities, noted, “Bulls have to protect 23,500 if they are to have any chance of a rebound. Bears have the upper hand till 24,060 remains intact, but more immediate resistance lies near 23,800.”
Global markets showed positive momentum, with Asian markets trading higher following a rally in technology shares on Wall Street. The optimism was partly fueled by Foxconn’s record fourth-quarter revenue announcement.
In the commodities market, gold remained steady near $2,634 an ounce, while Brent crude stabilized around $76 per barrel. “Gold prices recovered from their lows amid strong buying from global central banks. As per the WGC report, global central banks added 53 metric tonnes of gold in November month into their reserves,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Looking ahead, market participants are awaiting US economic data this week for additional clues on the Federal Reserve’s rate trajectory, along with TCS’s Q3 results. The INDIA VIX, which measures market volatility, is currently trading at 15.65, after surging 15.58 per cent in the previous session, indicating heightened market uncertainty.
