Nifty recovers from days low to close above 17,500; banks outperform

Axis Bank, Kotak Mahindra Bank, and Power Grid Corporation emerged as the top gainers among Nifty stocks

Market update at 3.30 PM: Indices recovered towards the last hour of the session and experienced huge volatility. Nifty recovered about 150 points, only to give away half of its gains. In the end, the benchmark index plunged 0.82 per cent and closed at 17,530. Sensex lost about 450 points while Nifty Midcap and Nifty Smallcap closed lower by 1.58 per cent & 1.92 per cent, respectively.   

Among the sectors, financials recovered and emerged as the major contributor to the rally in the end. Meanwhile, Nifty Realty and Nifty Metal closed lower by over 2 per cent each.  

Axis Bank, Kotak Mahindra Bank, and Power Grid Corporation emerged as the top gainers among Nifty stocks while Hindalco, Coal India & Grasim were the top losers.   

Nifty recovered from its 20-DMA level and has indicated strong support at lower levels. The focus will turn towards the US inflation data, which is set to be released tonight and is likely to dictate the market trend for tomorrow.   

Market update at 11 AM: Indices are trading lower amid volatility. Nifty is currently down by a per cent and hovers around 17,500. Meanwhile, Sensex has lost about 500 points while Nifty Midcap & Nifty Smallcap slipped about 1.5 per cent each.  

All the sectoral indices are trading in the red. Nifty Metal and Nifty Realty lost over 2 per cent each. Surprisingly, despite such negativity, India VIX is marginally lower.  

The top gainers among Nifty stocks are HCL Tech, TCS, and Maruti Suzuki while Hindalco & Coal India are trading weak.  

Market update at 9.30 AM: Indices have opened lower amid weak global cues. Nifty is down by 100 points while the mid-cap and small-cap indices have slipped over half a per cent each.  

Among the sectors, energy is the only sector that is trading positively while metal, realty & IT indices are down by over a per cent each. With this, India VIX has surged over a per cent.  

Pre-market update: Last night, the US markets closed significantly lower with NASDAQ plunging about 300 points and Dow Jones too lost over a per cent. Such a fall can be attributed to the rising bond yield and crucial inflation data, which is set to be released tonight.

The inflation is expected to be around 8.4 per cent, which is a decade-high. With this, the Asian markets have opened lower, and SGX Nifty indicates a muted opening of about a per cent.

In the last trading session, the FIIs have sold for about Rs 1,145 crore while the DIIs bought for Rs 486 crore worth of equity.

TCS records a 7 per cent increase in profits YoY and the revenue is up by 16 per cent. The stock is likely to be in focus today.

Nifty is likely to open below 17,600 while the level of 17,500 shall act as a major support level.