Sensex loses 500 points in opening session but recovers soon, Nifty remains below 9,500
Sensex slipped by more than 500 points but recovered quickly currently at 31,865.52 while Nifty stands below 9,500 in the opening session on Tuesday. Markets around the globe continue to suffer due to coronavirus pandemic that has gripped the world as more than more people are falling ill every day affecting workforce, offices, businesses and ultimately everything is reflecting on the market.
After gyrating over 1,000 points in a highly volatile opening session, the BSE barometer was trading 475.45 points or 1.51 per cent higher at 31,865.52.
Similarly, the NSE Nifty advanced 163 points, or 1.77 per cent, to 9,360.40.
On Monday, Sensex plunged over 2,713 points, tracking a selloff in Asian peers as the coronavirus pandemic continued to wreak havoc on markets. Dalal Street was buzzing with speculation of an inter-meeting rate cut by the RBI after Governor Shakitkanta Das called a press conference at 4 pm amid widespread calls for a rate cut following similar steps by the world's leading central banks.
The rupee depreciated 55 paise to 74.31 per US dollar (intra-day). The 30-share BSE index settled 2,713.41 points or 7.96 per cent lower at 31,390.07.
Likewise, the broader NSE Nifty gave up the 9,200 level, slumping 757.80 points or 7.61 per cent to close at 9,197.40. All Sensex components ended in the red. IndusInd Bank was the top loser, followed by Tata Steel, HDFC, ICICI Bank, Axis Bank, Infosys and ITC.
According to traders, market became more volatile after RBI's surprise press conference announcement.
Many analysts, over the past week, have said the RBI has legroom to cut rates to the tune of 65 bps by June. Some like Barclays and BofA have also spoken about the likelihood of an inter-meeting cut (before the April 3 policy meeting).
