Sensex closes 260 points higher, Nifty at 14,199; Bank, IT stocks shine

Benchmark indices witnessed a sharp recovery on Tuesday, after opening sharply weak on global cues.

However, continuous buying by foreign institutional investors lifted the sentiment as the Sensex and Nifty scored gains.

S Ranganathan, Head of Research at LKP Securities said, “Bulls put to rest worries across Europe on account of the lockdown as IT & Financials led the charge in afternoon trade. The broader market witnessed a renewed interest in insurance stocks and several Small & Midcap names across sectors were seen buzzing around.”

The Sensex rose 260.98 points or 0.54 per cent to close at 48,437.78. It had opened at 48,037.63 but slumped further to 47,903.30. However, in the afternoon, it made a strong comeback to hit 48,486.24 mark.

The Nifty rose 66.60 points or 0.47 per cent to close at 14,199.50. It started at 14,075.15 and dipped to 14,048.1, against the previous day's close of 14,132.90.

The sentiment turned positive for the broader market, as 1,740 shares advanced, 1,268 shares declined, and 159 shares remained unchanged.

Nifty Midcap and Nifty Bank traded in the green. Nifty Midcap rose 55.15 points or 0.91 per cent to 6141.40; while Nifty Bank rose 509.80 points or 1.63 per cent to 31,722.26. BSE IT reached 25,442.61, up 308.88 points or 1.23 per cent; while Nifty IT was up 659.10 points or 2.62 per cent to 25,769.15. However, Nifty Auto declined by 1.90 points or 0.02 per cent to 9416.05.

Axis Bank, HDFC, HDFC Life, Wipro and IndusInd Bank were among the top gainers on the Nifty, while losers included ONGC, JSW Steel, Bajaj Finance, Tata Steel and Hindalco.

Benchmark indices opened weak on Tuesday, as the US markets tumbled overnight and a growing number of Covid-19 cases. Announcement of a new nationwide lockdown in the UK by Prime Minister Boris Johnson had also negatively impacted the market sentiment.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research Ltd- Investment Advisor said: “The market continues to witness the resilience and recovered after an opening with a gap down to stay above the immediate support level of the Nifty 50 Index level of 13,950. While sustaining above 13,950 is the key factor from a short-term perspective.”

“We suggest maintaining above this level market to gain momentum and open the possibility for a movement until 14250-14270. The momentum indicators like RSI, MACD to recover, and market breadth to improve, further strengthening a short-term bullish outlook.”