Markets bounce back after falling in early trade

Mumbai: Benchmark indices began the trade on a bearish note on Monday in tandem with weak global market trends, but soon recovered all the early lost ground and were trading in the positive territory.

After a weak beginning, the 30-share BSE Sensex further declined 299.15 points to 58,541.64 in early trade. The NSE Nifty too fell by 89.85 points to 17,441.

However, later both the benchmark indices recovered all the early lost ground and were trading higher. The Sensex traded 157.23 points higher at 58,998.02, while the Nifty quoted 49.70 points up at 17,580.55.

From the Sensex pack, UltraTech Cement, Asian Paints, Titan, Dr Reddy’s, Tata Steel, HCL Technologies, Maruti and ICICI Bank were the major laggards in early trade.

Mahindra & Mahindra, IndusInd Bank, Infosys, Bajaj Finserv, and State Bank of India were trading in the green.

Elsewhere in Asia, markets in Seoul, Shanghai, Tokyo, and Hong Kong were trading lower.

The US markets had ended in the negative territory on Friday.

“The near-term texture of the market has turned weak and the buy on dips strategy is unlikely to work in the present risk-off global environment. FIIs turning sellers is a short-term negative. The market is likely to take a decisive trend only after the Fed policy announcement on 21st September,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The 30-share BSE benchmark had tanked 1,093.22 points or 1.82 percent to settle at 58,840.79 on Friday. The Nifty declined 346.55 points or 1.94 percent to 17,530.85.

Meanwhile, the international oil benchmark Brent crude climbed 0.62 per cent to USD 91.92 per barrel.

Foreign institutional investors (FIIs) offloaded shares worth Rs 3,260.05 crore on Friday, according to data available with the BSE.