Mumbai: Benchmark BSE Sensex recovered most of its losses to close marginally down in a volatile session on Tuesday even as private lender IndusInd Bank slumped 27 per cent and global markets declined on US recession worries. The 30-share BSE Sensex settled down by 12.85 points or 0.02 per cent at 74,102.32 with half of its constituents closing lower. The broader Nifty of NSE advanced 37.60 points or 0.17 per cent to close at 22,497.90, rebounding from the day’s lows. The market capitalisation (mcap) of BSE-listed firms edged up by Rs39,721.99 crore to Rs3,94,25,540.72 cr ($4.51 trillion).

“Despite significant sell-offs in the US and other Asian markets driven by concerns over an economic slowdown caused by the ongoing trade war, the domestic market is showing signs of a gradual recovery. Its relatively lower volatility can be attributed to a moderation in valuations, following recent corrections, along with supportive factors like falling crude oil prices, an easing Dollar Index, and expectations of a rebound in domestic earnings. The attention remains on the upcoming retail inflation data, which could provide insights into potential interest rate cuts,” said Vinod Nair, head (research), Geojit Financial Services.

The BSE Smallcap gauge fell 0.70 per cent, however, the midcap index went up 0.72 per cent.

Ajit Mishra, Sr V-P (research), Religare Broking Ltd, added that “markets remained volatile, but managed to close slightly in the green amid mixed signals.