Markets back in green on late recovery in bank, auto stocks

Mumbai: Benchmark indices- BSE Sensex and NSE Nifty- snapped their two-day losing streak to close nearly half a per cent higher in a volatile session on Tuesday following gains in banking, metal and auto stocks.

The 30-share BSE Sensex rebounded more than 1,000 points from the day's low before settling at 59,031.30, showing net gains of 257.43 points or 0.44 per cent. As many as 21 of Sensex shares closed in the green, while nine declined. The broader NSE Nifty rose by 86.80 points or 0.50 per cent to settle at 17,577.50 as 42 of its constituents advanced.

The key indices opened lower due to losses in IT and FMCG shares as uncertainty prevailed over the interest rate hikes by the US Federal Reserve to control inflation. Losses in Asian markets also hit the sentiment. However, late recovery in banking, metal and auto shares helped the indices recover from the lows and snap the two-day losing streak. From the Sensex pack, Mahindra & Mahindra rose the most by 3.78 per cent.

"Markets witnessed heightened volatility as the Sensex gyrated more than 1,000 points intra-day before late buying in banking, auto, metal & realty stocks aided recovery. Markets may witness bouts of volatility in coming days as global factors will continue to keep investors on tenterhooks," Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said.