Comments
Market witnessed a pullback rally on Tuesday, rebounding sharply from Monday’s losses with benchmark indices closing over 3 per cent higher.
Market opened on a positive note, tracking mixed global cues as global markets remained on edge owing to the geopolitical tensions between Russia and Ukraine. It rallied further during closing hours on broad-based buying.
The BSE Sensex closed at 58,142.05, up 1736.21 points or 3.08 per cent. It recorded an intraday high of 58,211.38 and a low of 56,438.47. Nifty 50 closed at 17,352.45, up 509.65 points or 3.03 per cent, near the day’s high of 17,375.00. It recorded an intraday low of 16,839.25.
Breadth turns positive
The market breadth turned positive with 2,056 stocks advancing on the BSE against 1,316 that declined while 92 remained unchanged. However, 418 stocks hit the lower circuit as compared to the 272 stocks that were locked in the upper circuit. Besides, 109 stocks touched a 52-week high level and 106 touched a 52-week low. S Ranganathan, Head of Research at LKP securities said, “As the street went into trade today after yesterday’s biggest single-day fall in the last ten months, investors were left thinking whether the template has indeed changed.”
“A confluence of headwinds is now weighing on the minds of investors even as we had a massive pullback rally today led by Autos, Banks, IT & FMCG. The narrative for the day, however, was the fact that investors used the correction to their advantage thereby triggering short-covering amidst encouraging export data for the month of January,” added Ranganathan.
Vinod Nair, Head of Research at Geojit Financial Services said, “A ray of hope that tension between Russian & Ukraine is de-escalating, prompting a smart recovery in global equities. The domestic market followed the trend as oil prices edged lower.”
“India’s CPI inflation for January rose to 6.01 per cent breaching RBI’s tolerance level due to high food inflation and low base effect, this will be a point of concern for domestic market in the near-term,” said Nair.
Tata Motors, Bajaj Finance, Eicher Motor, Shree Cement and Hero Motocorp were the top gainers on the Nifty 50. Only two scrips- Cipla and ONGC closed in the red.
All in the green
All sectoral indices closed in the green with auto, financials, IT and realty recording higher gains.
Nifty Auto was up over 4 per cent at closing, while Nifty PSU Bank was up nearly 4 per cent. Nifty Bank, Nifty Financial Services, Nifty Private Bank, Nifty IT and Nifty Realty each closed over 3 per cent higher.
Nifty Consumer Durables was up nearly 3 per cent while Nifty FMCG and Nifty Metal closed over 2 per cent higher each.
Broader indices
Broader indices also closed in the green as midcaps and smallcaps witnessed buying action.
The Nifty Midcap 50 was up 3.09 per cent at closing while the Nifty Smallcap 50 was up 2.33 per cent. The S&P BSE Midcap was up 2.68 per cent while the S&P BSE Smallcap was up 1.97 per cent.
The volatility index softened 10.29 per cent to 20.61 .
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.