Sensex, Nifty Reverse Earlier Gains To Fall For Fifth Straight Session

Indian equity benchmarks reversed gains from earlier in the session and fell for the fifth straight session even as global stocks recovered from the previous day's hammering to the lowest since November 2020, and the dollar's surge ran out of steam on Tuesday.

The BSE Sensex index fell falls 37.70 points, or 0.07 per cent, to close at 57,107.52, and the NSE Nifty dipped 8.90 points, or 0.05 per cent, to 17,007.40, after both benchmarks had opened with gains on Tuesday, marking the fifth day of losses in a row.

In the previous session, the Sensex had crashed over 1,000 points, and the Nifty closed nearly 2 per cent lower.

Tata Steel, which lost 2.25 percent, was the biggest loss in the Sensex pack, followed by Titan, SBI, Kotak Bank, Tech Mahindra, ICICI Bank, and HDFC Twins.

PowerGrid, IndusInd Bank, Dr. Reddy's, HCL Tech, and Nestle India, on the other hand, are among the winners.

18 of the equities that make up the Sensex closed lower, while 12 finished higher.

“Volatility was the hallmark of today's trade as on backdrop was the risk of recession in financial markets across the globe. The street suspects that the Fed will move so aggressively as to cause a recession. The other biggest headwind that markets across the globe face is inflation," said Prashanth Tapse, Senior Vice President for Research at Mehta Equities.

That even as global stocks recovered from 21-month lows on Tuesday as the broad market decline ended worldwide.

US S&P futures bounced 0.94 per cent after stocks on Wall Street fell deeper into a bear market on Monday, benchmark 10-year Treasury rates declined from their 12-year high in the previous session, and the dollar weakened from 20-year highs against a basket of currencies.

After reaching its lowest point since November 2020 on Monday, the MSCI world equity index rose about 0.3 per cent. The FTSE in Britain gained 0.6 per cent, and European equities surged more than 1 per cent.

However, investors were still uneasy after US Federal Reserve officials stated on Monday that managing domestic inflation remained their top priority.

"US rate expectations have increased fairly significantly," said Andrew Hardy, investment manager at Momentum Global Investment Management, told Reuters, but he added that "there's a huge amount of bearishness already priced into markets".

Global markets remained on edge as investors readied themselves for a greater likelihood of a worldwide recession, even as dip buyers emerged.

“The market is pricing in some Fed increases, but we're a bit worried that it might not be pricing in everything,” Laila Pence, president of Pence Wealth Management, said on Bloomberg Television. “Everyone is nervous.”