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Markets opened flat and were trading with marginal gains as investors adopted a wait and watch stance ahead the RBI’s third quarter monetary policy review later today.
At 9:30AM, the 30-share Sensex was up 50 points at 20,757 and the 50-share Nifty was up 15 points at 6,151.
Benchmark share indices recorded their highest percentage fall yesterday since September 3, 2013, amid a sell-off in emerging markets, with rate sensitive shares leading the decline.
U.S. stocks extended recent losses on Monday, with the S&P 500 falling for a third straight session as concern grew about the Federal Reserve's plans for withdrawing stimulus.
The losses, which picked up late in the session after the S&P 500 briefly traded in positive territory, followed a steep selloff late last week tied to emerging market concerns. The slide gave the S&P 500 its worst weekly percentage loss since June 2012.
Asian shares recovered to turn marginally positive after sliiping to near five-month lows in early trades on Tuesday as turmoil in emerging markets and concerns about an economic slowdown in China took their toll.
The Nikkei was up 0.2%, Shanghai COmposite edged up 0.1%, Hang Seng rose 0.1% and Straits Times was up 0.2%.
Rate sensitive shares which had witnessed a sell-off on Monday rebounded on short covering at lower levels. BSE Realty, Auto, Bankex and Capital Goods indices were among the top gainers while FMCG index was the top loser.
In the financial segment, ICICI Bank, HDFC, SBI and Axis Bank were up 1-1.5% each.
Index heavyweight Reliance Industries witnessed short covering after retreating in the previous few sessions. The stock was up 1% at Rs 850.50.
Tata Motors was up 1.5%. The stock had crashed 6% yesterday on news that Karl Slym, managing director, died after falling from a hotel room in Bangkok.
Capital goods shares which witnessed profit taking in the previous few sessions also staged a recovery with both L&T and BHEL up 0.7-1% each.
The broader markets outperformed the benchmark indices with both the Mid-cap and Small-cap indices up 0.9% each.
Market breadth was positive with 782 gainers and 299 losers on the BSE.
