Stock markets turn volatile after positive beginning

Representational image only.
| Photo Credit: PTI

Equity benchmark indices started the trade on a firm note on May 19 amid positive trend in the global stock markets and foreign fund inflows but later turned volatile.

The 30-share BSE Sensex climbed 205.08 points to 61,636.82 in early trade. The NSE Nifty advanced 56.2 points to 18,186.15 in initial deals. Later, both the benchmark indices turned volatile and were trading marginally lower.

The Sensex quoted 48.29 points lower at 61,383.45 and the Nifty dipped 28.30 points to 18,101.65.

Among the Sensex firms, State Bank of India, Infosys, HCL Technologies, Tech Mahindra, Axis Bank, Wipro, ICICI Bank, Power Grid, Kotak Mahindra Bank and Mahindra & Mahindra were the major gainers. ITC, NTPC, Titan, Larsen & Toubro, Maruti and Tata Motors were among the laggards.

In Asia, Seoul, Tokyo and Shanghai markets were trading in the green, while Hong Kong quoted lower. The U.S. market had ended on a positive note on May 19.

Foreign Institutional Investors (FIIs) continued their buying activity as they bought equities worth ₹970.18 crore on Thursday, according to exchange data. Meanwhile, global oil benchmark Brent crude climbed 0.71% to $76.40 per barrel.

Intra-day volatility may persist given the recent downward trend, said Prashanth Tapse, Senior VP (Research), Mehta Equities Limited.

The Sensex had declined 128.90 points or 0.21% to settle at 61,431.74 on Thursday. The Nifty fell 51.80 points or 0.28% to end at 18,129.95.

“Nifty is finding it difficult to break the 18,100-18,400 range, in spite of favourable global cues and good Q4 results. The U.S. 10-year bond yield has risen and the Rupee has weakened to the dollar. This currency movement is not supportive for the equity market. FII buying is getting neutralised by Domestic Institutional Investors (DII) selling,” said V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.