Markets surrender early gains to trade lower

Mumbai: Benchmark equity indices faced volatile trends in early trade on Monday, surrendering their initial gains to trade lower, following a weak lead from Wall Street and rising crude oil prices.

The 30-share BSE Sensex climbed 126.36 points to 72,769.79 in early trade after a weak beginning to the trade. The NSE Nifty went up 20.65 points to 22,044.

However, later both the benchmark equity indices pared early gains and slipped in the red. The 30-share BSE quoted 118.03 points lower at 72,525.40, and the Nifty went lower 56.70 points to 21,953.70.

From the Sensex basket, Mahindra & Mahindra, Tata Steel, JSW Steel, Axis Bank, Tata Motors and HCL Technologies were the gainers.

Asian Paints, Power Grid, Titan and Maruti were among the laggards.

In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were trading higher.

The US markets ended lower on Friday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 848.56 crore on Friday, according to exchange data.
“With the US Federal Reserve’s decision looming on Wednesday, market volatility is expected to intensify. Investors’ attention is also shifting towards the upcoming Lok Sabha polls,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Bears may seize control following a weak lead from Wall Street in Friday’s trading session, potentially triggering volatility in Nifty as bullish traders scale back amidst anticipation of an impending Fed rate cut, he added.

Global oil benchmark Brent crude climbed 0.36 per cent to USD 85.65 a barrel.

The 30-share BSE benchmark declined 453.85 points or 0.62 per cent to settle at 72,643.43 on Friday. The NSE Nifty dropped 123.30 points or 0.56 per cent to 22,023.35.