Sensex recovered from a fall of over 1000 points in the morning amid mixed global cues, as metals, telecom, power, financials and pharma stocks bounced back.After slumping 1028 points to 56,404, the Sensex was trading at 57,506 at 9.30 am up 15 points or 0.03 per cent. It recorded an intraday high of 57,529. The Nifty 50 which also recovered was trading at 17,190, up 22.90 points or 0.24 per cent, near its intraday high of 17,192. It recorded an intraday low of 16,836.80.
Overnight, US stocks ended higher after suffering staggering losses. The US Fed will start its two day meeting on Tuesday and the outcome will come on January 26. The wait has led to a selloff across the world. Analysts expect the Fed will roll back its easy liquidity measures amid higher inflation and indications of multiple interest rate hikes this year.
Also, new-age firms that have listed in the last few months at high valuations have taken a beating, dampening investor sentiment. Rising COVID cases in India, which have remained above three lakh for some days now, are also causing concern.
Early trends this earnings season indicate that high input costs continue to be a bugbear, as also delayed kharif (monsoon) crop harvesting due to unseasonal rains, and the virus.