In volatile trade, sensex rises 1.1k points, closes lower – Times of India

MUMBAI: A relief rally after days of move southwards cheered D-Street investors on Tuesday. As a result, the sensex initially went up by more than 1,100 points in mid-session as buying emerged across the board, but late selling pared gains and the index closed just 239 points up at 77,578 points up.
After the initial rally, a host of geopolitical and global economic factors weighed on investor sentiment and hence the late selling, Siddhartha Khemka of Motilal Oswal Financial Services said.
“Selling pressure overtook (investor sentiment on Dalal Street) following reports of escalating tensions between Russia and Ukraine. This came in the wake of US President Joe Biden’s decision to authorize Ukraine to target military sites in Russia using US-made long-range weapons. This also led to a hike in the bond yields after an easing that had come in recently,” Khemka wrote in a note.
The selling was led by foreign funds that recorded a net outflow of Rs 3,412 crore, BSE data showed. The day’s outflow took the monthly net to nearly Rs 34,500 crore from the equity market, official data showed. Among the 30 sensex constituents, HDFC Bank and M&M contributed the most to the day’s gains while selling in Reliance Industries and SBI weighed in the most, BSE data showed. Outside of the leading stocks, Honasa Consumer (Mamaearth), lost another 11% on Tuesday, after losing 20% on Monday on the back of extremely weak quarterly numbers. Several brokerages covering the stock, have downgraded their target price for Mamaearth sharply.
The day also saw the retail portion of the Rs 10,000-crore NTPC Green Energy IPO fully subscribed on Day 1 of its opening. Overall, the issue was subscribed 33%. In most IPOs, the institutional and the high-net-worth investors apply on the last day. The IPO will close on Friday, November 22.