Indian equity benchmarks the Sensex and the Nifty snapped three-day losing run on March 28 after last-hour buying in select heavyweights such as Reliance Industries, ICICI Bank, Bharti Airtel and Axis Bank.
The market has been volatile of late due to factors including the Ukraine war, rising crude oil prices and concerns over looming rate hikes.
"The current volatility is due to elevated commodity prices and resultant downgrade of future earnings growth. The price of products has been increasing constantly and is expected to increase further in the future, affecting demand and margin. Uncertainties due to rising covid cases especially in China also added to the weakness," Vinod Nair, Head of Research at Geojit Financial Services.
Sensex rose 231 points, or 0.40 percent, to end at 57,593.49 while the Nifty closed at 17,222, up 69 points or 0.40 percent.
However, mid and small caps underperformed as the BSE Midcap and smallcap indices ended 0.40 percent and 0.53 percent lower, respectively.
"Indian equities showed resilience and bounced back in green following a positive European market. We can expect ease in this volatility based on the cessation of the war, commodity prices and supply constraints," said Nair.
Banking stocks saw traction today as the Nifty Bank index closed in the green after three days of losses. Nifty Bank closed 0.85 percent higher with Axis Bank, ICICI Bank, SBI, Federal Bank and IndusInd Bank closed over a percent higher each. Nifty PSU Bank closed 1.22 percent higher.
"Mixed global cues combined with a lack of any domestic trigger are causing volatile swings in the index. However, the rotational buying in select index majors is helping the benchmark to hold at higher levels. Going ahead, a decisive break above 17,350 in Nifty would fuel further surge else consolidation will continue. Meanwhile, traders should continue with a hedged approach," said Ajit Mishra, VP - Research, Religare Broking.
"Technically, one more time the Nifty took the support near 17,000 or 200-day simple moving average (SMA) and bounced back sharply to close above the 50-day SMA. But the broader texture of the market is still nondirectional. In the near future, as long as the index is holding the 17,100 level, the market is likely to retest the level of 17,325-17,400. However, if the index falls below the same, it could trigger further weakness till 17,000-16,950," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
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