Mumbai, Feb 27: Indian equity benchmarks Sensex and Nifty opened on a positive note on Thursday but soon encountered volatile movements due to persistent foreign fund outflows, monthly derivatives expiry, and weak global market cues.
The BSE Sensex initially surged 231.97 points to 74,834.09, while the NSE Nifty gained 65.75 points to reach 22,613.30. However, market fluctuations saw the indices swinging between gains and losses as trading progressed.
Key Gainers and Losers
Among the top performers in the Sensex pack were Bajaj Finserv, Bajaj Finance, IndusInd Bank, Axis Bank, Nestle, and Tata Steel. On the other hand, UltraTech Cement, Mahindra & Mahindra, NTPC, HCL Tech, Tech Mahindra, and Tata Motors were the major laggards.Market Factors Driving Volatility
Market sentiment remained shaky as foreign institutional investors (FIIs) offloaded equities worth ₹3,529.10 croreon Tuesday, as per exchange data. The Indian stock markets remained closed on Wednesday due to Mahashivratri.Analysts predict heightened volatility as traders roll over their February futures and options (F&O) contracts, set to expire today. "Uncertainty over tariffs and relentless FII selling continue to weigh on investors' minds, raising fears of an extended market downturn," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
On a positive note, falling crude oil prices provide some relief. WTI crude dipped towards $69 per barrel, which could help ease inflationary concerns.
Global Market Trends
In Asia, Tokyo traded in positive territory, whereas Seoul, Shanghai, and Hong Kong saw declines. Meanwhile, US markets closed on a mixed note on Wednesday.Brent crude, the global oil benchmark, rose 0.33% to $72.77 per barrel.
Previous Session Recap
On Tuesday, the Sensex gained 147.71 points (0.20%), closing at 74,602.12, while the Nifty fell for the sixth consecutive session, slipping 5.80 points (0.03%) to end at 22,547.55.With ongoing FII sell-offs and derivative contract rollovers, market volatility is expected to persist, keeping investors on edge.
