Market rebound loses steam; Sensex, Nifty end flat on global trade war worries

Mumbai, Mar 7 (PTI) Equity benchmark indices Sensex and Nifty surrendered early gains to close almost flat in a volatile trade on Friday as uncertainties over the global trade war sapped investors' risk appetite.

Besides, a bearish trend in global markets and persistent foreign fund outflows also hit investor sentiments, traders said.

Snapping its two-day winning streak, the 30-share BSE Sensex slipped 7.51 points to end at 74,332.58. During the mid-session, it climbed 246.34 points or 0.33 per cent to hit an intraday high of 74,586.43.

However, the broader Nifty of NSE edged up 7.80 points to close at 22,552.50. During the day, the 50-share barometer rose 89 points or 0.39 per cent to hit a high of 22,633.80.

During the week, the BSE Sensex climbed 1,134.48 points or 1.55 per cent high, and the NSE Nifty rose 427.8 points or 1.93 per cent.

"The global market is experiencing a heightened uncertainty due to US tariff impositions and counter threats from its peers. This ambiguity has led to increased risk aversion and diminished appeal of equities. EMs have been particularly affected, experiencing significant outflows.

"Lately, the S&P 500 index is showing signs of a deeper correction, reflecting concerns about the potential impact of tariffs on the US economy. In contrast, Indian markets have demonstrated resilience off-late despite looming trade war," Vinod Nair, Head of Research, Geojit Financial Services, said.

From the Sensex pack, Zomato, IndusInd Bank, NTPC, Infosys, HCL Technologies, Titan, Power Grid, Hindustan Unilever, Tech Mahindra and ITC were among the gainers.

On the other hand, Reliance Industries, Nestle India, Tata Motors, Adani Ports, Tata Steel, UltraTech Cement and Kotak Mahindra Bank were the laggards.

As many as 2,512 stocks advanced while 1,468 declined and 134 remained unchanged on the BSE.

"The key equity benchmarks ended sideways on Friday as market sentiment remained cautious, with concerns over US tariffs and fluctuating trade policies unsettling global financial markets. In a volatile day of trade, after opening weak, the indices recovered as buying interest emerged in select blue-chip stocks, including Reliance Industries and Tata Motors, along with oil and gas companies by midday," Devarsh Vakil, Head of Prime Research, HDFC Securities, said.

The BSE smallcap gauge rose 0.75 per cent, while the midcap index slipped 0.30 per cent.

Among the BSE sectoral indices, Consumer Durables, Utilities, Focussed IT, Realty, IT, Teck, Power, Services and Healthcare were the laggards.

Commodities, Energy, FMCG, Industrials, Telecommunication, Auto, Capital Goods, Metal and Oil & Gas were the gainers.

"Though Indian markets remained flat for the day, they outperformed global peers and Asian markets, which tumbled after fresh US economic data indicated signs of slowing growth," Vakil said.

In Asian markets, Tokyo, Shanghai, Hong Kong and Seoul ended lower.

European markets are trading lower in the mid-session deals. Wall Street closed lower on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,377.32 crore, while Domestic Institutional Investors (DIIs) bought equities worth Rs 1,617.80 crore on a net basis on Thursday, according to exchange data.

Global oil benchmark Brent crude rose 1.32 per cent to USD 70.38 a barrel.

"While a recovery in corporate earnings could significantly improve the domestic sentiments. Investors could go overweight on large caps given stability in earnings and increasing valuation comfort," Nair said.

On Thursday, the 30-share BSE Sensex jumped 609.86 points to settle at 74,340.09, marking its second straight day of gains. The broader Nifty of NSE advanced 207.40 points to close at 22,544.70. PTI HG HG BAL BAL

Source: PTI