D St gains steam as EU mkts open on positive note
Major factors -Fitch forecast lowering India's GDP growth rate and hawkish stand by US Fed that pushed US bond yields higher- impacted the investor sentiment; However, Sensex bounced back by 1,059 points in second half of the session from day's low of 56,930 hit in 1st hour as positive trading in European markets brought buying interest; Sensex rallied 760.38 pts or 1.32% during the day; heavy buying in index heavyweight Reliance Ind, Infosys and TCS
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Late Rebound Pares Early Loss
- Hopes on Russia-Ukraine talks supported EU stocks
- Indices started recovering from 12:30pm
- BSE Sensex closed 696.81 pts at 57,989.30
- NSE Nifty moved up by 197.90 pts to 17,315.50
- Tech Mahindra, Reliance Industries, Bajaj Finserv, ITC, TCS, Indusind Bank, Kotak Mahindra Bank, Infosys and Power Grid among gainers
Mumbai: Benchmark stock indices Sensex and Nifty made a spirited recovery to close over one per cent higher on Tuesday, riding on gains in Reliance Industries, Infosys and TCS amid a recovery in global equities.
After opening lower, the 30-share BSE Sensex had plunged to a day's low of 56,930.30 points on concerns over inflation and growth as India hiked fuel prices after a 137-day hiatus. However, the barometer rebounded in afternoon trade in line with gains in European and Asian stocks. The BSE Sensex closed up by 696.81 points or 1.22 per cent at 57,989.30 as 26 of its constituents ended in green. The broader NSE Nifty climbed 197.90 points or 1.16 per cent to finish at 17,315.50.
"We witnessed good rebound in markets driven by buying in Reliance. Market recovery after the morning fall is a good sign for Indian market. In coming days, we still expect volatility to persist till the war situation between Russia and Ukraine and crude price stabilize," said Rahul Sharma of Equity 99.
"The domestic market started with a negative bias taking cues from rising crude prices and hawkish signals from Fed on aggressive policy tightening. However, the trend reversed as European markets opened on a positive note buoyed by hope that Ukraine may consider working towards a truce," adds Vinod Nair, head (research) at Geojit Financial Services.
"Markets posted strong gains and settled around the day's high amid mixed cues. Initially, the bias was slightly on the negative side in continuation to Monday's fall, however, a strong surge in the select index majors from IT, energy, and banking space completely changed the tone in the latter half," Ajit Mishra, V-P (research), Religare Broking Ltd said.
Foreign institutional investors (FIIs) were net sellers in the capital market, as they sold shares worth Rs 2,962.12 crore on Monday, according to stock exchange data.
Gains in the broader market were marginal compared to the benchmark index, with the BSE midcap index gaining 0.17 per cent and smallcap gauge 0.15 per cent. Tech Mahindra emerged as the lead gainer with a jump of 3.83 per cent, followed by RIL (2.59 per cent), Bajaj Finserv (2.46 per cent), ITC (2.21 per cent), TCS (2.09 per cent), Kotak Mahindra Bank (1.88 per cent) and Infosys (1.87 per cent). In contrast, Hindustan Unilever Limited, Nestle India, NTPC, and Sun Pharma were the laggards.
Among BSE sectoral indices, energy (1.96 per cent), oil and gas (1.94 per cent), IT (1.93 per cent) and Teck (1.76 per cent) were the biggest gainers.
