Despite global signals remaining neutral, Indian markets rallied for a second consecutive session on Tuesday, with the greenback closing behind massive buying. Benchmark Index – The BSE Sensex rose nearly 1350 points and the Nifty 50 stabilized at market close above the 16250 level, mainly lifted by metallic stocks.
At the close, the BSE Sensex rose 1344 points, or 2.54 per cent, to 53,913, while the Nifty rose 50,417 points, or 2.63 per cent, to 16,259. Exceeding the benchmarks, the broader market – the Nifty Mid-Cap 100 and the Small-Cap 100 – rose more than 3 and 2.5 percent, respectively.
All 50 Nifty stocks closed green. Metal stocks were among the top gainers, with Hindalco up nearly 10 per cent, followed by Tata Steel up about 8 per cent. Where as Coal India, JSW Steel each grew more than 7.5 per cent and ONGC about 7 per cent.
Heavyweights of other indices such as Adani Ports, Tata Motors, Reliance, ITC, Wipro, L&T, ICICI Bank, Maruti, HCL Tech, Apollo Hospitals, Bajaj Finance, Eicher Motors, Titan gained 3 to 5 per cent on Tuesday.
The market was lifted by heavy buying, mainly in metal stocks, as the index rose about 7 percent amid expectations of a revival of Chinese demand and price buying. All other sectoral indices rose between 2 and 3 per cent, with Nifty Pharma expected to close above 1 per cent as the market closed.
In the primary market, Life Insurance Corporation of India (LIC) shares opened at around 9% discount on BSE and NSE on Tuesday. They are listed at Rs 867 per share on the BSE and Rs 872 per share on the NSE, as against the issue price of Rs 949 per share in the upper band.
Milind Muchala, Executive Director, Julius Bear India, noted in his post-market remarks that “markets will continue to be affected by the central bank’s actions, particularly the US Fed, and the growing news flow regarding inflation trends.”
In the short term, there could be some technical pull-backs in the market, additional frustration that seems to be floating around and considering the over-selling conditions we are in, he said.
The analyst added that the market appears to be in a somewhat long-drawn phase of consolidation with significant uninterrupted volatility. He added that he would be cautious about the market for some time and hoped that uncertainty and instability would continue in the near term.