Sensex, Nifty Off Day's High As Markets Trim Gains Amid Volatile Trade, Coronavirus Jitters

Domestic stock markets started Tuesday's session sharply higher, a gap-up opening for benchmark indices S&P BSE Sensex and NSE Nifty 50, a day after they suffered their worst single-day loss in history. The Sensex added as much as 1,481.63 points to touch 27,462.87 in the first few minutes of trade, and the broader Nifty benchmark climbed to as high as 8,036.95 compared with its previous close. Gains across sectors, led by financial, consumer goods, IT and pharma stocks, backed the upmove in the markets. 

However, the markets gave up most of those gains soon after amid volatility. At 10:57 am, the Sensex traded 209 points - or 0.80 per cent - higher at 26,192 and the Nifty was up 66 points - or 0.8 per cent - at 7,679. 

By that time, only eight out of the 11 sectoral indices remained in the positive territory, led by consumer goods, IT and pharma stocks.

The National Stock Exchange's India VIX index - which gauges the markets' expectation of volatility in the near term - was up 13.76  per cent to 81 at the time, having surged 20.35 per cent earlier in the day.

Still, thirty five of the 50 shares in the Nifty basket moved higher. Top percentage gainers were Infosys, Adani ports, Hindustan Unilever, Tech Mahindra, Reliance Industries and Dr Reddy's, up between 4.68 per cent and 8.05 per cent each.

On the other hand, IndusInd Bank, Titan, Hero MotoCorp and ITC down between 3.27 per cent and 9.99 per cent - were the top Nifty laggards.

Analysts say volatility cannot be ruled out for the time being as investors assess the policy decisions announced by authorities around the globe to fight the rapid spread of the coronavirus (COVID-19) pandemic. 

Equities in other Asian markets rallied as the US central bank pledged to stabilise the financial system which eased debt market pressures. MSCI's broadest index of Asia-Pacific shares outside Japan added 1.2 per cent, though that followed a drop of almost 6 per cent on the previous day. South Korea and Australia also recouped some of their recent losses.

Overnight in the US, Wall Street's slide deepened as the Federal Reserve's action to shore up credit across the economy proved insufficient to sooth investors' fears. The Dow Jones ended 3.04 per cent lower, while the S&P 500 and Nasdaq Composite indices dropped 2.93 per cent per cent and 0.27 per cent respectively.

The total number of coronavirus cases in the country climbed to nearly 500 and the death toll rose to 9, according to the Union Health Ministry, as more than 30 states and union territories have been placed under a complete lockdown in an effort to control the spread of the deadly COVID-19 contagion.