Benchmark stock market indices witnessed high volatility in early trade after facing profit booking pressure at record-high levels at opening.
The S&P BSE Sensex was up 83.76 points at 81,439.60 at 9:55 am, while the NSE Nifty50 gained 25.90 points to trade at 24,862.
However, both the benchmark indices fell moments later. Most other broader market indices also faced volatility in early trade.
Gains in energy stocks were the most prominent among all other sectoral indices, but heavyweight stocks from information technology, banking and financial services were trading in the red.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Sustained capital flows into mutual funds and the retail investor enthusiasm will keep the market resilient.”
“The elevated valuations continue to be a concern, particularly in the broader market. A healthy trend in the market now is that high quality stocks with good earnings visibility are gaining strength on buying by institutions,” he added.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, “This Tuesday, Nifty is expected to waver between gains and losses, influenced by a clash between overbought technical conditions and bearish sentiments following a sharp fall. Volatility is anticipated due to intensified Middle East tensions and FIIs being net sellers of Rs. 2,475 crores.”
“Key catalysts include the FOMC meeting, US NFP report, and Q1 results from major companies,” he added.