Benchmark indices recovered sharply during closing hours to close higher on Tuesday.

Market opened on a weak note after four consecutive sessions of losses as investors remained on edge amid rising prices of crude oil and essential commodities stoking inflation concerns. Indices recovered in the second half to close higher, witnessing buying action across multiple counters. 

The BSE Sensex closed at 53,424.09, up 581.34 points or 1.10 per cent, near the day’s high of 53,484.26. It recorded an intraday low of 52,260.82. The Nifty 50 closed at 16,013.45, up 150.30 points or 0.95 per cent, near the day’s high of 16,028.75. It recorded an intraday low of 15,671.45.

Breadth turns positive

The market breadth turned positive with 2,243 stocks advancing on the BSE, against 1,085 that declined, while 99 remained unchanged. Furthermore, 25 stocks hit the upper circuit as compared to three locked in the lower circuit. Besides, 75 stocks touched a 52-week high while 76 touched a 52-week low.

Vinod Nair, head of research at Geojit Financial Services, said, “Domestic indices reversed their trend and traded with gains led by export-oriented sectors like pharma and IT, which witnessed buying interest as the rupee fell to its record lows.”

“Favorable exit poll results of state elections and low-level buying seen in mid- and small-caps also helped in adding optimism in the domestic market. Major western markets were also trading in the green while other Asian peers continued to trade in negative territory on fear of the impact of global inflationary pressure due to the ban on Russia’s oil export,” added Nair. 

Mitul Shah, head of research at Reliance Securities, said, “Domestic equity markets closed higher despite Russia and Ukraine’s failure to reach a deal on creating “humanitarian corridors” as bloodshed from Russia’s invasion increased.”

“Market may remain volatile due to the Russia-Ukraine crisis. Trend in global equities, the movement of rupee against the dollar and crude oil prices will dictate trend in the near term,” he added.

IOC, Sun Pharma, Tata Consumer, TCS and Cipla were the top gainers on the Nifty 50 while Hindalco, ONGC, Tata Steel, JSW Steel and Britannia were the top laggards. 

Metals lose shine

On the sectoral front, all indices except Nifty Metal and Nifty Oil & Gas closed in the green with IT, PSU bank, realty, FMCG and pharma recording higher gains.

Nifty Metal closed nearly 1.5 per cent lower while Nifty Oil & Gas was down 0.70 per cent. 

Meanwhile, Nifty Realty was up over 3 per cent at closing. Nifty IT was up nearly 3 per cent. Nifty PSU Bank was up 2.57 per cent. Nifty Pharma and Nifty Healthcare Index were each up over 2 per cent. Nifty FMCG and Nifty Private Bank were up over 1 per cent each at closing. 

Broader indices 

Broader indices closed in the green as well.

Nifty Midcap 50 was up 1.59 per cent while Nifty Smallcap 50 was up 1.50 per cent. The S&P BSE Midcap was up 1.46 per cent while the S&P BSE Smallcap was up 1.33 per cent.

The volatility index softened 2.53 per cent to 28.59.