Sensex ends 81 points down, Nifty holds 7,500 in a volatile session

In a volatile trading session, the S&P BSE Sensex ended 81 points lower on Thursday, while broader CNX Nifty managed to hold its key 7,500-mark.

The headline indices fell over 350 points in the early trade following steep losses on Wall Street as worries over record low oil prices heightened fears about the global economy, but rose as much as 164.35 to briefly reclaim its crucial psychological level of 25,000 after better-than-expected results from IT heavyweight Infosys propped market sentiment.

The 30-share index ended the day at 24,772.97, down 81.14 points, while broad-based 50-share index quoted 7,536.80, down 25.60 points. 

Market breadth turned negative with 21 of the 30 Sensex components ending the day in red.

“Looking at yesterday and today’s recovery from the lows, my sense is that we are somewhere close to the bottom,” said Gaurang Shah, vice president at Geojit BNP Paribas.

“My advice would be to avoid the small and mid-cap stocks right now because their valuations have run up to a great extent,” added expert.

Axis Bank stock was the worst performer on both the benchmark indices and lost 4 per cent.

Infosys gained as much as 6.5 per cent after the company raised its full-year revenue guidance and beat analysts’ estimates for its consolidated net profit in the third quarter.

Tata Steel shares tumbled 3.36 per cent after rating agency Standard & Poor’s (S&P) downgraded steel major to ‘BB-‘, a low investment grade rating, over persistent subdued operating performance amid subdued demand and low steel prices.

Infosys shares wiped out initial losses and gained 1 per cent after the IT major reported stellar December quarter earnings.