Equity benchmarks closed higher on Tuesday, snapping a seven-day losing streak, though gains were trimmed in late trading hours amid escalating geopolitical tensions between Russia and Ukraine.

The S&P BSE Sensex ended at 77,578.38, up 239.37 points or 0.31 per cent, while the NSE Nifty 50 settled at 23,518.50, gaining 64.70 points or 0.28 per cent. The indices witnessed volatile trading, with the Nifty swinging nearly 250 points intraday.

Markets started strong but experienced a sharp sell-off in the final trading hours after reports emerged of Ukraine launching strikes deep into Russian territory using Western missiles. “Markets were in a sweet spot in the first half due to the recent oversold position, but most of the gains eroded towards the closing stages as weak European market cues owing to widening of geopolitical tensions between Ukraine and Russia prompted investors to exercise caution,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Among the top gainers on the NSE, Mahindra & Mahindra led with a 3.15 per cent rise, followed by Tech Mahindra (1.88 per cent), HDFC Bank (1.81 per cent), Dr Reddy’s (1.66 per cent), and Eicher Motors (1.59 per cent). The major losers included SBI Life (-2.92 per cent), Hindalco (-2 per cent), Reliance (-1.85 per cent), HDFC Life (-1.67 per cent), and State Bank of India (-1.46 per cent).

Broader markets outperformed the benchmark indices, with the advance-decline ratio improving to 1.92:1. Out of 4,059 stocks traded on BSE, 2,362 advanced while 1,601 declined, and 96 remained unchanged. The session saw 172 stocks hitting 52-week highs, while 81 touched 52-week lows.

“A strong bounce back due to bottom fishing was short-lived as caution prevails in the market. Investors tend to use every opportunity to book profit amidst consistent FII selling and weak Q2 earnings,” said Vinod Nair, Head of Research at Geojit Financial Services.

The market’s volatility was evident as the India VIX surged 6.59 per cent to 16.17. Sector-wise, media stocks outperformed with over 2 per cent gains, while metals shed nearly 1 per cent. Real estate, auto, and pharmaceutical sectors also showed strength, gaining more than 1 per cent each.

“The Nifty’s movement reflects that bears are firmly in control, using every rebound as an opportunity to short,” noted Ajit Mishra, SVP Research at Religare Broking Ltd, maintaining a “sell on rise” stance.

Technical analysts pointed to key levels for the market. “Support for Nifty is now seen at 23,350 and 23,200. On the higher side, the immediate resistance zone for Nifty is at 23,600-650 levels and the next resistance is at around 23,800 Mark,” said Tejas Shah from JM Financial & BlinkX.

The banking sector showed resilience, with the Bank Nifty closing at 50,626.50, up 262.70 points or 0.52 per cent. The Nifty Financial Services index also gained 0.62 per cent to end at 23,403.05.

In corporate news, PG Electroplast’s shares surged over 15 per cent after announcing an exclusive manufacturing agreement with African electric two-wheeler company Spiro Mobility for the Indian market.

Market analysts suggest that while recent corrections in valuations might indicate a potential pause in further price erosion, the recovery will largely depend on an improvement in corporate earnings and the geopolitical situation.

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