New Delhi: The key benchmark indices bounced back in trade on Tuesday in tandem with global equity markets as investors looked for value in beaten down shares.
IT, metals and index heavyweight Reliance Industries led the up move, while financials pared gains in the latter half of the trading day.
The BSE benchmark index, the Sensex, opened with a positive gap of almost 500 points at 56,320, and went on to rally to a high of 56,901 – up 1,079 points from the previous close.
The BSE benchmark, however, pared gains towards the end of the day and finally settled 497 points higher at 56,319.
The NSE Nifty surged to a high of 16,936, and eventually gained 157 points to close at 16,771.
“The market is attempting to recover from yesterday’s heavy selloff, domestic indices staged a gap-up opening on bargain hunting supported by positive sentiments across global markets. Although concerns surrounding the impact of Omicron & FII selling still lingers, investors are trading cautiously and are optimistic”, said Vinod Nair, Head of Research at Geojit Financial Services.
On Thursday, markets will react to the US Fed’s policy decision. While the majority expects that the committee would hold rates citing the possible challenges due to the new Covid variant, commentary on tapering, inflation and growth would be critical.
Besides, we have weekly derivatives expiry scheduled, hence investors should expect choppiness to remain high. Participants should wait for some clarity over the direction and limit positions.
IT stocks, HCL Technologies and Wipro were the major gainers among the Sensex 30 pack, up 4 per cent and 3.6 per cent, respectively. Tata Steel, UltraTech Cement, Sun Pharma, Tech Mahindra and Titan were up 2-3 per cent each.
Reliance Industries added 1.5 per cent to Rs 2,310. In the broader market, the BSE Midcap and Smallcap indices finished with gains of 1.4 per cent and 1.3 per cent, respectively.
The overall breadth too was fairly positive, with more than two advancing shares for every declining stock on the BSE.
Among sectoral indices, the BSE Metal index surged 3 per cent. The Consumer Durables index was up 2.2 per cent, while the IT, Telecom and Realty indices rallied around 1.5 per cent each.
On the flip side, PowerGrid Corporation slipped 1.8 per cent. Axis Bank and Bajaj Finance were the other notable losers.
Debutant MapmyIndia soared 53.6 per cent to a high of Rs 1,587 in opening trades versus its issue price of Rs 1,033 per share on the BSE. The stock, however, pared some gains and eventually ended 33.2 per cent higher at Rs 1,376, with volumes of over 11.41 lakh shares on the BSE. READ MORE
In the primary market, CMS Info Systems was off to a slow start, and was subscribed only 33 per cent as of 03:30 PM, with the retail quota subscribed up to 66 per cent.
