The two key equity benchmarks, Sensex and Nifty, on Tuesday were trading flat amid volatility, tracking mixed global cues. At 9.55 am, the BSE Sensex was up 24 points to 65,240. On the other hand, the NSE Nifty50 was trading at 19,406, up 13 points.
On the 30-share Sensex platform, ITC, Maruti, Bajaj twins, Axis Bank, Reliance emerged early gainers. On the downside, JioFin, Titan, TCS, TechM, Infosys, Airtel were among the losers. Among specific stocks, shares of Jio Financial hit 5 per cent lower circuit for the second straight day after it debuted exchanges. Shares of Adani Power rallied 5 per cent after the company shared target of 21,110 megawatt (MW) thermal capacity by 2029.
In the broader markets, Nifty Midcap 100 and Nifty Smallcap 100 indices surged up to 0.4 per cent.
Sectorwise, except Information Technology, all other sectoral indices are trading in the green. Nifty PSU Bank and Nifty Realty indices led the charge, gaining 0.5 per cent each.
In the previous session on Monday, the S&P BSE Sensex ended 267 points higher at 65,216, while the NSE Nifty 50 settled at 19,394, up 83 points.
"There are two dominant factors influencing equity markets now. One, the resilient US economy is supporting global growth and global equity markets; this is a positive. Two, the sharp spike in US bond yields (the 10-year yield at 4.34 per cent is the highest since 2007) is impacting capital flows to emerging markets like India; this is a negative for Indian markets. Sustained rise in FII inflows will happen only if the US bond yields decline. Clarity on this will emerge only after trends in US inflation and Fed's monetary stance indicate softening," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
In Asian markets, Seoul, Tokyo, and Hong Kong were quoting in the green while Shanghai traded lower. The US markets ended mostly in the positive territory on Monday.
Global oil benchmark Brent crude declined 0.14 per cent to $84.34 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,901.10 crore on Monday, according to exchange data.
Meanwhile, the rupee recovered from its all-time low levels and appreciated by 7 paise to 83.06 against the US dollar in early trade on Tuesday, as the American currency retreated from its elevated levels. Forex traders said the rupee is trading in a narrow range as selling pressure by foreign investors dented sentiments, while the weak tone in US dollar and positive domestic markets cushioned the downside.
At the interbank foreign exchange, the domestic unit opened at 83.07, then touched a high of 83.06 against the American currency, registering a rise of 7 paise over its last close. On Monday, the rupee depreciated by 3 paise and settled for the day at an all-time low of 83.13 against the US dollar.