Indian Markets Show Resilience Amid Global Turmoil

On Tuesday, the Indian equity benchmark indices, Sensex and Nifty, demonstrated a remarkable resilience by gaining in early trade, despite the weak global cues.

The 30-share BSE Sensex surged 205.55 points or 0.35 per cent to reach 58,443.40 points, while the broader NSE Nifty rose 44 points or 0.26 per cent to 17,198.30 points. Out of the Sensex pack, 20 stocks were trading in the green, while 10 declined.

Major gainers included Titan, Bharti Airtel, and L&T. This positive movement in the Indian markets occurred against the backdrop of most Asian markets trading lower, as investors continued to grapple with the fallout of recent bank failures in the US.

Deepak Jasani, Head of Retail Research at HDFC securities, noted that Indian markets could open flat to marginally up, despite the mostly negative Asian markets and lower US markets on Monday. This comes after Sensex and Nifty declined for three consecutive sessions, with Sensex crashing 897.28 points or 1.52 per cent to settle at 58,237.85 points on Monday.

The recent collapse of Silicon Valley Bank in California and New York's Signature Bank has left regional bank shares under heavy pressure, prompting investors to reassess the outlook for interest rates. On Monday, European markets and most US stocks closed in the red. Foreign Institutional Investors (FIIs) were net sellers on Monday, offloading domestic equities worth Rs 1,546.86 crore, according to exchange data.