The Indian market bounced back sharply in the second half of the trading session on March 22 but the bulls failed to push the benchmark indices into the green. The S&P BSE Sensex recovered about 500 points from the lows, while the Nifty retested 14,600 and then bounced back.
The Sensex closed 86 points low at 49,771, while the Nifty50 closed 7 points lower at 14,736.
Buying was seen in realty, IT, FMCG, and healthcare, while profit-taking was seen in banks, finance, consumer durables, and public sector.
Broader markets outperformed the benchmarks. The S&P BSE midcap index was up 1 percent and the smallcap index 0.7 percent.
Fears of a second coronavirus wave and elevated bond yields kept investors on the edge, experts said. Crucial support for the Nifty is at 14,450-14,600, while resistance is placed at 14,900-15,000, they said.
“Fear of the second wave of Covid-19 elevated bond yield, and weak global cues are weighing on the domestic market. The expectation of the rise in inflation is also impacting the market,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“The market has marched well in anticipation of faster economic recovery and is taking a breather, given tightening restrictions and an increase in future interest rate, spiking fear of a slower recovery.”
