Indian equity benchmarks recovered initial losses to push higher in a volatile sessions on Monday, although a cautious mood persisted across global markets amid fears that more of aggressive rate hikes will send the world economy tumbling into a recession. Gains in financial, IT, FMCG and oil & gas shares were the biggest contributors to the gain in both headline indices.

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NSE

The Sensex and the Nifty50 rose as much as 0.7 percent in the first half of the session, having begun the day in the red. The 30-scrip index added 409.9 points to touch 58,329.8 at the strongest level of the day so far — bouncing back 707.5 points from the weakest level of the day. The Nifty climbed to as high as 17,305.4, up 119.7 points from its previous close.

At midday, 40 stocks in the Nifty50 basket moved higher. SBI, Bajaj Auto, ICICI Bank, Tata Consumer, Infosys, NTPC, Eicher Motors, Adani Ports, Kotak Mahindra Bank and Dr Reddy's, were the top gainers, rising between 0.9 percent and 2.5 percent.

ICICI Bank, Infosys, SBI and Reliance were the biggest boosts for both main indices.

On the other hand, UltraTech, Larsen & Toubro, JSW Steel, Hindalco and Apollo Hospitals — down around one percent each — were the top laggards.

HDFC Bank shares rose as much as 1.1 percent to Rs 1,457.3 apiece on BSE, after the country's largest lender by market value beat Street expectations with its quarterly performance. Analysts raised their earnings estimates for the year ending March 2023 after the earnings announcement.

The L&T Infotech stock fell as much as two percent to Rs 4,578 apiece, as the IT company's margin rose by 10 basis points sequentially by fell short of analysts' estimate.

Investors awaited more of financial results from India Inc for domestic cues, with ACC, Can Fin Homes and Tata Coffee due to report their quarterly numbers later in the day.

"Rallies triggered by market positioning will be temporary because there won’t be any follow-on fundamental support for the rally, a trend that played out in US market on Friday. There are no major triggers to take the mother market much higher at least in the near term... Such an uncertain scenario provides opportunities for long-term investors to slowly accumulate high quality stocks," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"Even though strong dollar and high bond yields in US may nudge FIIs to sell Indian shares, strong flows into domestic mutual funds and optimistic retail investors can provide the counter to FII selling providing some stability to the market," he said.

Overall market breadth favoured the bears, as 1,484 stocks rose and 1,879 fell on BSE around noon.

Consumer durables and electronics retailer Electronics Mart made a strong debut on stock exchanges BSE and NSE.

Global markets

Equities in other Asian markets fell, with MSCI's broadest index of Asia Pacific shares outside Japan down 1.3 percent at the last count. Japan's Nikkei 225 was down 1.4 percent.

S&P 500 futures were up 0.5 percent. On Friday, the S&P 500 dropped 2.4 percent, the Dow Jones 1.3 percent and the Nasdaq Composite 3.1 percent.

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