Mumbai, March 17
Domestic equity benchmarks opened higher for the second consecutive session on Tuesday, tracking positive cues from the Asian and US markets, but soon turned volatile amid ongoing West Asia tensions.
Sensex opened 323.82 points or 0.42 per cent higher at 75,826.68 against the previous close, while Nifty started the session at 23,493.20, up 85 points or 0.36 per cent.
However, the early gains proved short-lived. The 30-share Sensex slipped to 75,422.73, down 80.12 points or 0.10 per cent, while the Nifty traded at 23,389.15, lower by 20 points or 0.08 per cent in early deals.
On the sectoral front, IT stocks led the losses, with the Nifty IT index declining 0.83 per cent. Auto, mid-small IT & telecom, PSU banks, FMCG and oil & gas indices also traded in the red.
Among gainers, media, realty and consumer durables indices posted modest gains of up to 0.24 per cent.
Analysts said markets are likely to remain volatile with a cautious undertone due to geopolitical developments and global macro headwinds.
"The Indian equity market is expected to remain volatile with a cautious undertone, driven by global macro factors and evolving geopolitical developments," said Ponmudi R, CEO of Enrich Money.
According to Aakash Shah of Choice Equity Broking, markets are seeing a technical recovery after recent declines, supported by short covering and value buying.
"Nifty is approaching a crucial resistance zone around 23,500-23,600 levels, while immediate support is placed near 23,250-23,300," he said, adding that a sustained move above resistance could extend gains in the near term.
Meanwhile, Asian markets traded on bullish note, with Japan's Nikkei 225, Hong Kong's Hang Seng and South Korea's KOSPI rising up to 3 per cent.
From a macroeconomic perspective, inflation risks remain elevated, particularly if crude oil prices rebound, said analysts.
- IANS
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