Markets remain range bound

New Delhi: The financial markets saw a late spurt in buying with both benchmark indices showing good gain - BSE Sensex up 271 points while the Nifty was up 73 points as bellwethers were supported led by RIL. Notably, a significant number of Asian indices are currently hovering near a one-month low.

In contrast, the performance of Indian markets has demonstrated remarkable resilience, says Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services.

This is evidenced by the decline of the India VIX from 15.5 levels to below 13, indicating a substantial reduction in volatility expectations.

FII flows have been erratic this year with ~50 per cent of the days seeing negative flows.

The start of the Q3 earnings season, coupled with uncertainty in the Middle East and the recent increase in Russian aggression should dominate the market news flow in the coming weeks, he said.

Vinod Nair, Head of Research, Geojit Financial Services said the weakness in global indices continued to weigh down the domestic indices with every up move.

The market is looking for fresh triggers for a direction, and the release of US and Indian inflation data may provide a near-term direction in the market.

The investor's focus will be shifted to the earnings season, on a sequential basis, the earnings growth is likely to be lower, while the expectations for auto, capital goods, and cement will remain strong.

At closing, the Indian benchmark indices closed on positive note for the third consecutive day. The Sensex was up 271.50 points, or 0.38 per cent, at 71,657.71 at the closing, while the Nifty was up 73.90 points, or 0.34 per cent, at 21,618.70, says Vaibhav Vidwani, Research Analyst, Bonanza Portfolio.