Across-the-board buying arrests Sensex, Nifty slide

Our Bureau Mumbai | Updated on November 23, 2021

Metals shine; volatility index rises above 18

Market rebounded sharply with benchmark indices ending higher on Tuesday after four consecutive sessions of losses.

Market started on a weak note amid mixed global cues. Benchmark indices rebounded sharply on across-the-board buying during closing hours, led by a sharp recovery in metals and PSU bank stocks.

The BSE Sensex closed at 58,664.33, up 198.44 points or 0.34 per cent. It recorded an intraday high of 58,834.95 and a low of 57,718.34. The Nifty 50 closed at 17,503.35, up 86.80 points or 0.50 per cent, near the day’s high of 17,553.70. It recorded an intraday low of 17,216.10.

The volatility index ended 2.82 per cent higher at 18.02, ahead of F&O expiry.

Breadth turns positive

The market breadth turned positive with 2,429 stocks advancing on the BSE as against 825 that declined while 162 remained unchanged. Furthermore, 445 stocks hit the upper circuit as compared to the 156 stocks that were locked in the lower circuit. Besides, 162 stocks touched a 52-week high and 58 touched a 52-week low.

Vinod Nair, Head of Research at Geojit Financial Services, said: “Domestic equities clawed their way out of the recent downslide, boosted by metal, PSU bank and pharma stocks with mid- and small-caps outperforming the benchmark indices.

“US markets witnessed a late sell-off yesterday despite the re-nomination of Jerome Powell as the Fed chair. Oil and gas indices remained under pressure amid reports of the US releasing its emergency reserves to keep the rising crude oil prices under control. The telecom sector was in focus today as the sector majors initiated a rate hike, which will enhance profitability,” added Nair.

Powergrid, JSW Steel, Coal India, NTPC and Adani Ports were the top gainers on the Nifty 50 while Asian Paints, IndusInd Bank, Infosys, Axis Bank and Titan were the top losers.

Binod Modi, Head Strategy at Reliance Securities, said, “Domestic bourses witnessed brisk recovery from the day’s low and ended in green despite weak cues from global markets. Notably, the sharp correction in the market in the last couple of days made risk-reward favourable for many counters, and investors seem to be utilising this opportunity today.”

“Notably, a strong recovery in metals, pharma, PSU bank and RIL supported the Nifty rebound today and most key sectoral indices recovered from the day’s low and ended in green. Mid-cap and small-cap stocks witnessed stronger recovery and outperformed large caps,” said Modi.

Green all around

On the sectoral front, all indices closed in the green. Metals led the recovery. Realty, PSU bank, pharma and healthcare, and oil and gas indices also gained.

Nifty Metal was up 3.30 per cent at closing. Nifty Realty was up 2.16 per cent while Nifty PSU Bank was up 2.39 per cent. Nifty Pharma and Nifty Healthcare Index were up 1.85 per cent and 1.72 per cent, respectively. Nifty Oil & Gas was up 1.02 per cent.

Broader indices outperform

The broader market also rebounded sharply with mid-cap and small-cap indices outperforming the benchmarks.

Nifty Midcap 50 was up 1.89 per cent while Nifty Smallcap 50 was up 1.87 per cent. The S&P BSE Midcap was up 1.61 per cent while the S&P BSE Smallcap was up 1.81 per cent.

Published on November 23, 2021

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