Equity benchmarks the Sensex and the Nifty ended in the green, snapping their two-day losing run on January 30, supported by gains in shares of select index heavyweights, including Bajaj Finance, Infosys and Reliance Industries.
The sentiment of the market, however, remained weak due to the Ambani-Hindenburg saga and caution ahead of the Union Budget and Fed outcome. Equity barometer the Sensex fell 632 points in intraday trade and recovered only at the fag end to settle in the positive territory.
Sensex ended with a gain of 170 points, or 0.29 percent, at 59,500.41. The Nifty50 closed at 17,648.95, up 45 points, or 0.25 percent.
Mid and smallcaps underperformed as the BSE Midcap index fell 0.22 percent while the Smallcap index dropped 0.10 percent.
As many as 195 stocks, including Adani Green Energy, Adani Transmission, Dixon Technologies (India), Graphite India, Indigo Paints, Pfizer, Relaxo Footwears, Thyrocare Technologies and SpiceJet, hit their 52-week lows in intraday trade on BSE.
Crude oil prices traded slightly lower around 4 pm. The benchmark Brent Crude traded near the $86 per barrel mark at that time. The rupee ended 2 paise up at 81.50 per dollar.
Sensex gainers: Shares of Bajaj Finance, UltraTech Cement, Bajaj Finserv, HCL Tech, NTPC and Asian Paints ended as the top gainers in the Sensex index.
Sensex losers: Shares of Power Grid, IndusInd Bank, Larsen & Toubro, Tata Steel and Hindustan Unilever ended as the top losers in the Sensex kitty of stocks.
Among the sectoral indices, Nifty Oil & Gas fell 3.57 percent with shares of Adani Total Gas (down 20 percent) as the top loser.
Nifty FMCG, Media, Metal, Pharma, Realty, Healthcare and Auto indices also ended in the red.
On the other hand, Nifty IT ended over a percent higher with all components in the green. Shares of Coforge rose 3 percent while those of Mphasis and HCL Tech rose up to 2 percent.
Experts' views on the market
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities pointed out that volatility continued to be the order of the day, as benchmark Sensex gyrated nearly 1,000 points intraday before staging a smart comeback in late trades on selective buying.
Chouhan said two big events, the interest rate decision by the US Federal Reserve and the Union Budget are keeping investors nervous.
Vinod Nair, Head of Research at Geojit Financial Services said 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 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 the Budget and Fed policy," said Nair.
Technical views by experts
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas highlighted that the Nifty breached the last week’s low of 17,493. On the downside, it received support near 17,400 and recovered sharply towards the end of the session, resulting in a positive daily close.
"The Nifty managed to hold above the 61.8 percent retracement of the September–December 2022 rise and 200 DEMA, which are near 17,550. This makes today’s low of 17,405 a crucial support. On the higher side, the index can test 17,800, which will now act as resistance as per the principle of role reversal," said Ratnaparkhi.
Chouhan of Kotak Securities underscored that the Nifty found support near 17,400 and bounced back sharply. However, the short-term texture of the market is still on the downside.
"A pullback rally could be seen if the index trades above 17,550. Above the same, the market could rally to 17,750-17,800. On the flip side, below 17,550, the market could slip to 17,400-17,350," said Chouhan.
Key market data
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.