Markets are subdued in early trade on Tuesday, with losses in metal and energy stocks countering gains in automobile and consumer goods, while investors remained on edge across Asian markets on rate hike and economic slowdown worries.
The Nifty was up 0.05% around 16,310 in early trade, while Sensex rose 0.09% to around 54,520. The benchmark indices fell over 1% in the previous session.
Nifty Metal and Nifty Energy were down more than 1% each, while Nifty Auto and Nifty FMCG rose between 0.9% and 0.7% respectively
The rupee remained near record lows at 77.245 against the US dollar. The currency reported a record low of 77.52/$ on Monday.
"Global sentiment is negative because of geopolitical uncertainty, rise in rates, so it is like a storm which has come together but investors will have to weather it as market will remain extremely volatile for the next few days," said Samrat Dasgupta, chief executive officer at Esquire Capital Investment Advisors.
Nifty's volatility index (India VIX), which indicates traders' expectations about market instability over the next 30 days, rose as much as 2.2% to 22.515.
A Reuters poll found India's retail inflation likely surged to an 18-month high in April, largely driven by rising fuel and food prices and staying well above the Reserve Bank of India's upper tolerance limit for a fourth consecutive month.
The consumer price inflation data is due to be released this Thursday.
India's benchmark indices last week registered their worst week since November, hurt by a surprise interest-rate hike by the central bank, foreign fund outflows and mixed corporate results.
Asian equities fell to their lowest in nearly two years on Tuesday, as investors fretted about rising interest rates and lower economic growth.
