Markets rebound on buying in BFSI, IT stocks
Sensex, Nifty recover on encouraging macro data; BSE smallcap index inched up 0.18%, while mid-cap and large-cap indices closed with 0.61% gain
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Mumbai: Benchmark Sensex spurted by 482 points, while broader Nifty closed above the 21,700 level on Tuesday on buying in banking, financial services and IT sector stocks as easing retail inflation boosted investor sentiment.
The 30-share BSE Sensex surged 482.70 points or 0.68 per cent to settle at 71,555.19 points. The gauge moved between a high of 71,662.74 and a low of 70,924.30 during intra-day. The broader NSE Nifty also soared 127.20 points or 0.59 per cent to close at 21,743.25 with 39 of its components ending in the green and 11 in the red.
“The domestic market largely recovered from Monday’s losses, driven by gains in the banking sector. Improved sentiment stemmed from a decline in domestic inflation, which is expected to boost rural demand,” said Vinod Nair, head (research), Geojit Financial Services.
“However, investors remained cautious ahead of US inflation data, anticipating a moderation, pivotal for the Fed’s interest rate trajectory,” he added.
Metal and commodities were major losers, declining 1.44 per cent and 0.94 per cent, respectively. BSE smallcap index inched up 0.18 per cent while midcap and largecap indices closed with a gain of 0.61 per cent each.
Among Sensex stocks, ICICI Bank was the lead gainer, rising by 2.46 per cent. Axis Bank, Wipro, Kotak Mahindra Bank and NTPC were among the major gainers. The five stocks that defied the trend included UltraTech Cement, Mahindra & Mahindra, Titan, Tata Motors and Nestle.
Government data released on Monday showed India’s retail inflation declined to a three-month low of 5.1 per cent in January. However, the country’s industrial production growth slowed to 3.8 per cent in December 2023. Among sectoral indices, bankex and financial services gained 1.44 per cent and 1.23 per cent, respectively. While services rose 1.45 per cent, tech advanced 0.40 per cent and energy gained 1.03 per cent.
In Asia, Tokyo’s Nikkei 225 and China’s Shanghai Composite settled in the positive territory while Hong Kong’s Hang Seng was in the red. European markets were in the red with CAC 40 of France and DAX of Germany declining 0.32 per cent and 0.62 per cent, respectively.
The US market ended Monday’s session on a mixed note. Global oil benchmark Brent crude rose 0.78 per cent to $82.64 a barrel on Tuesday.
