Indian equity benchmarks failed to hold on to the green in volatile trade on Tuesday, with the Sensex taking its losses to more than 1,300 points in three back-to-back sessions. Losses in oil & gas, metal and IT shares pulled the headline indices lower, though gains in select financial and FMCG shares lent some support.

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NSE

The 30-scrip Sensex index gyrated within a 630.7-point range, between 54,226.3 and 54,857, during the session before settling close to the lower end of the band. The broader Nifty50 benchmark moved in the 16,200-16,400 zone in intraday trade.

Gains in private banking names helped the market keep the downside in check, helping the banking index close the choppy session in the green.

Investors lost Rs 11.2 lakh crore in the three-day fall as the market capitalisation of BSE-listed companies came down to Rs 248.4 lakh crore, according to provisional exchange data.

Varun Goel, Head-Equity at Nippon India AIF, believes market valuations are about 8-10 percent expensive.

"For the Nifty, we are looking at (valuations of) somewhere from Rs 800 to 825 earnings per share (EPS) for the financial year 2022-23. On that basis, we are trading broadly around 20 times one-year forward earnings. I think the market traded normally 17-18 times," he told CNBC-TV18.

Reliance Industries, Tata Steel and Infosys were the biggest contributors to the loss in the 30-scrip index.

Asian Paints shares closed 2.5 percent higher after the paintmaker reported an 18.7 percent jump in quarterly revenue that exceeded Street estimates.

Broader markets suffered much deeper losses than broader indices.

Overall market breadth remained in favour of the bears throughout the day. On NSE, the advance-decline ratio stood at 1:4.

Global markets

European stocks came off two-month lows on Tuesday amid a rise in beaten-down shares following a bruising sell-off on concerns about a slowdown in global economic growth. The pan-European Stoxx 600 index was up 1.1 percent in early hours.

S&P 500 futures were up 0.8 percent, suggesting a higher start ahead on Wall Street.

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