Indian equity market opened mildly in the green on Tuesday due to receding covid fears in India. However, early in the trading session, some volatility was observed when indices shifted between gains and losses.
The BSE Sensex started trading mildly higher at 60,861 points from the previous close of 60,566 points, but during the early hour, it briefly traded in the red and hit a low of 60,405 points. NSE Nifty-50 opened slightly higher at 18,089 points from the previous close of 18,014 and briefly dipped below the 18,000 mark.
Sensex is trading 157 points or 0.2% up at 60,724 points, while Nifty is trading 56 points or 0.3% up at 18,071 points and Nifty Bank is trading 48 points or 0.1% down at 42,582 points as of 1:40 PM.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "Major part of the 320 point cut in Nifty on Friday has been reversed by the 207 point rally yesterday. Covid scare played an important role in the correction on Friday which saw sharp cuts on banking and hotel stocks and rally in pharma stocks. This trend has reversed with Covid fears receding now. Looks like 2022 is heading for a less volatile end. The New Year is likely to begin on an optimistic note with Q3 results and budget expectations influencing market moves. Results from the banking and capital goods segment would be good since bank credit growth and capex are the two strong themes in the economy now."
Wall Street was closed on Monday for the Christmas holiday and last Friday rose marginally, which is typically the first day of the five-day Santa Claus rally. The Dow Jones Industrial Average gained 176 points or 0.5%, while S&P 500 added 22 points or 0.6% and Nasdaq Composite was 0.2% higher.
The fear of recession and the fed's aggressive monetary stance might dampen the likelihood of a Santa Claus rally on Wall Street. In December, the Dow Jones Industrial Average fell almost 4% while S&P 500 and Nasdaq lost 5.7% and 8.5%, respectively.
