The Sensex and Nifty closed lower in see-saw trade today amid rising political tension after India and Pakistan were engaged in aerial conflict across the line of control.
The Sensex saw a wild swing of 636 points intra day and the Nifty too moved 188 points between the highest and lowest trading levels of the day. In early trade, the Sensex surged 398 points. The Nifty too rose 104 points after traders resorted to value buying after yesterday's close.
After the news of air conflict between Pakistan Airforce and Indian Airforce came in today, Sensex and Nifty entered into negative territory. The Sensex fell 238 points in afternoon trade to hit an intra day low of 35,735 level. Nifty too lost 84 points to hit intra day low of 10,751 level.
However, the benchmark indices managed to pare losses later. While Sensex fell 68 points to 35,905 level, Nifty closed 28 points lower at 10,806. Tata Motors (3.01%), Vedanta (2.92%) and HUL (1.77%) were the top Sensex losers.
Top Sensex gainers were Bharti Airtel (2.43%), Bajaj Auto (2.09%) and L&T (1.49%). On Tuesday, the Sensex closed 239.67 points, or 0.66 per cent, lower at 35,973.71, and the NSE Nifty ended at 10,835.30, down by 44.80 points or by 0.41 per cent after news poured in that India conducted airstrikes on terrorist camps in Pakistan.
Sahaj Agrawal from Kotak Securities said, "Nifty is expected to remain volatile on back of news flows from the domestic front. 10580 is an immediate support, use any dips to initiate longs. The broader market is relatively strong and the upside remains open for 11,100-11,200 in the near term."
Meanwhile, the mid cap and small cap indices closed 57 points and 23 points higher in trade today.
Market breadth was negative with 494 stocks trading higher compared to 1137 falling on the BSE. Consumer durables and banking stocks led the losses with their BSE indices falling 148 points and 133 points, respectively.
On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 1,674 crore on Tuesday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 720 crore, provisional data available with BSE showed.
Global shares were mostly lower in muted trading Wednesday as investors awaited the outcome of a summit between President Donald Trump and North Korean leader Kim Jong Un in Vietnam.
France's CAC 40 lost 0.4 percent in early trading to 5,219.06, while Germany's DAX fell 0.5 percent to 11,487.47. Britain's FTSE 100 lost 0.5 percent to 7,118.99 after Prime Minister Theresa May on Tuesday gave lawmakers the power to slam on the brakes and divert Britain away from a disruptive and chaotic exit from the European Union.
Edited by Aseem Thapliyal