Home / Markets / Stock Markets /  Market recovers marginally amid volatile trade, Sensex up 170 points, Nifty above 17,650

Indian shares opened higher on Monday and ended in green in a volatile session ahead of the Union budget as Adani Group extended a decline after the Hindenburg report last week triggered a sell-off over the previous two sessions. The Indian equities opened higher on Monday as Sensex gained 170 points while Nifty 50 nears the 17,650 mark up 44 points.

BSE Sensex up by 169.51 points, or 0.29 per cent, at 59,500, while Nifty 50 was at 17,648.95, up 44.60 points, or 0.25 per cent. Both the indexes swung between 0.6% gains and 1.1% losses during the session before settling a notch higher.

Meanwhile, the Nifty Bank index rose by 0.10 per cent to 40,387.45.

Bajaj Finance, Adani Enterprises, Ultratech cement, Bajaj FinServ and Asian Paints were among the top Nifty gainers, while Tata Power Grid, Bajaj Auto, IndusInd Bank, LT and JSW Steel were the biggest losers.

Twenty-six of the Nifty 50 constituents advanced while 24 declined.

"Continuing with the bearish momentum from the last week the Nifty opened gap down & went down to breach the last week’s low of 17493. On the downside it received support near 17400 & recovered sharply towards the end of the session, resulting in a positive daily close. Consequently, the Nifty managed to hold above the 61.8% retracement of the Sept – Dec 2022 rise & 200 DEMA, which are near 17550. This makes today’s low of 17405 a crucial support. On the higher side, the index can test 17800, which will now act as a resistance as per the principle of role reversal." said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

On the BSE index, the power and oil & gas indices shed 5.3 percent and 4 percent, while capital goods and metal indices fell 1 percent each. The information technology index rose 1 percent.

Adani Group stocks traded mixed with Adani Enterprises the only stock in green. Four of Adani Group stocks have a back-to-back lower circuits, while others were under pressure. Adani Group's seven listed stocks witnessed an erosion of over Rs1,75,522 crore in market valuation on Monday.

"The response by Adani had a mixed effect on the stock group and market. The saga is likely to continue as a hanging risk in the minds of the investors in the medium-term. To expect a scientific assessment report either by a strong independent third party or government is dim in the short-term. Now the focus of the market will be on budget and fed policy," said Vinod Nair, Head of Research at Geojit Financial Services.

The rupee rose by 9 paise to close at 81.50 (provisional) against Dollar in a restricted trade on Monday, supported by a weak greenback in the overseas markets and a decline in crude oil prices.

"Indian Rupee depreciated by 0.07% on weak domestic markets and huge FII outflows. However, weak Dollar index and decline in crude oil prices cushioned the downside. FPO related foreign inflows also supported Rupee at lower levels," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

"We expect Rupee to trade with a slight negative bias amid a weak tone in the domestic markets and expectations that US Dollar may rise on safe haven appeal. Month-end Dollar demand from importers and selling pressure from FIIs may also put downside pressure on Rupee. Traders may remain cautious ahead of India’s union budget and US FOMC meeting later this week. USDINR spot price is expected to trade in a range of 81 to 82.20," e added.

Foreign Institutional Investors (FIIs) turned net sellers in the capital markets on Friday as they offloaded shares worth 5,977.86 crore, according to exchange data amid a slump in Indian equities due to Adani Group-led selloff on Friday.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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