Markets snap 4-day rout on value buying, exit polls

Mumbai: Market benchmarks ratcheted higher in a see-saw session on Tuesday after four days of steep declines as investors accumulated recently-battered IT, pharma and finance stocks even as the Ukraine crisis remained an overhang.

World equities were mixed as participants tracked Russia's intensifying attack on Ukraine and the cascade of sanctions against Moscow. The bias was negative in the first half in continuation to prevailing trend. However, healthy buying in select heavyweights triggered a sharp recovery in the latter half as well as recovery seen in global markets. The 30-share BSE Sensex opened on a weak note and tumbled 581.93 points or 1.10 per cent to 52,260.82 during the day amid firming oil prices and relentless selling by foreign institutional investors (FIIs).

Overcoming bouts of volatility, the index gained momentum in the last hour of trade to close 581.34 points or 1.10 per cent higher at 53,424.09. On similar lines, the broader NSE Nifty darted up 150.30 points or 0.95 per cent to 16,013.45 points.

Investors' wealth on Tuesday jumped by over Rs2.51 lakh crore, in tandem with a sharp recovery in equities after four days of heavy declines. With the recovery in equities, the market capitalisation of BSE-listed companies jumped Rs2,51,663.79 crore to reach Rs 2,43,62,494.83 crore.

"Domestic indices reversed its trend and traded with gains led by export-oriented sectors like pharma and IT which witnessed buying interest as the rupee fell to its record lows. Favourable exit poll results of State election and low-level buying seen in mid and small caps also helped in adding optimism in the domestic market. Major western markets were also trading in the green while other Asian peers continued to trade in negative territory on fear of the impact of global inflationary pressure," said Vinod Nair, head (research) at Geojit Financial Services.