Indian stocks see-saw and end with gains despite weak global cues
Indian equity benchmarks see-sawed between gains and losses on Tuesday and extended their winning streak for the fifth straight session, despite weak global sentiments.
The 30 stock S&P BSE Sensex ended a touch higher, with a marginal gain of 20.86 points, or 0.04 per cent, at 58,136.36. The broader Nifty 50 of the National Stock Exchange was up 5.40 points, or 0.03 per cent, to close out Tuesday at 17,345.45.
The Sensex and the Nifty started the day in the red but went through a choppy trading session.
Among the Sensex index, shares of IndusInd Bank, Asian Paints, NTPC, Maruti, Hindustan Unilever, State Bank of India, Mahindra & Mahindra and Power Grid were among the biggest gainers.
However, Tech Mahindra, HDFC, Larsen & Toubro, Tata Steel and HDFC Bank were the biggest laggards.
“Global indicators did not favour bulls, with most Asian and Western markets trading lower over concerns of rising geopolitical tension between the US and China. Additionally, economic data point to a decrease in demand; major markets worldwide are trading with recessionary fears,” Vinod Nair, Head of Research at Geojit Financial Services, told PTI.
The domestic market, however, has proven resilient thanks to increased demand in heavyweights and a strengthening Indian rupee underpinned by falling US treasury yields and FII buying, Mr Nair added.
On the other hand, world stocks slipped, and bond yields fell on Tuesday, compounding fears of a global recession and concern that a visit by US House of Representatives Speaker Nancy Pelosi to Taiwan would further harm relations between China and the United States.
Investors sought safer assets after China threatened repercussions if Ms Pelosi visited the self-ruled island, which Beijing claims as its territory. China has repeatedly warned against Pelosi going to Taiwan. Washington said on Monday it would not be intimidated by China.
MSCI world equity index, which tracks shares in 47 countries, fell 0.4 per cent. The broad Euro STOXX 600 shed 0.7 per cent before clawing back some of its losses.
Futures gauges showed that Wall Street stocks were set to fall around 0.7 per cent.
“It’s all about the Taiwan threat,” said Robert Alster, chief investment officer at Close Brothers Asset Management. “There’s no way you can say it’s not moved up to geopolitical agenda.”
MSCI’s broadest index of Asia-Pacific shares retreated 1.3 per cent. Taiwan’s stock index dropped as much as 1.9 per cent, while Chinese blue chips tumbled 2.5 per cent before making up some of their losses.
Brent futures ended at $99.55 a barrel after losing almost $4 overnight. US West Texas Intermediate futures also eased to $93.59, extending Monday’s almost $5 slide.
