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Benchmark indices closed at record highs on Tuesday amid volatility, led by PSU bank and consumer durables stocks.
The market opened on a choppy note, following weak global cues and selling in IT stocks. The benchmark indices recovered during closing hours with recovery in financials and support from PSU Bank and consumer durables.
The BSE Sensex closed at a record high of 60,284.31, up 148.53 points or 0.25 per cent. It hit an intraday high of 60,331.74 and a low of 59,885.39. Nifty 50 closed at a record high of 17,991.95, up 46.00 points or 0.26 per cent. Nifty managed to cross the 18,000-mark intraay with a high of 18,008.65. It recorded an intraday low of 17,864.95.
Breadth remains positive
The market breadth remained positive with 1,772 stocks advancing on the BSE, 1,573 declining and 133 remaining unchanged. Furthermore, 440 stocks hit the upper circuit as compared to the 215 stocks that were locked in the lower circuit. Besides, 342 stocks touched a 52-week high level and 18 touched a 52-week low.
Vinod Nair, Head of Research at Geojit Financial Services said, "Following selling in IT stocks as a result of a weak start to the earnings season and weakness in global markets, the domestic market traded in the negative zone.”
“However, with strong support from PSU Banks on revamped hopes of privatisation and continued buying interest in consumer goods, metals and auto, the indices managed to end on a positive note. While global markets traded with cuts in fears of rising inflation due to soaring commodity prices and energy crunch,” added Nair.
Titan, Bajaj Auto, Bajaj Finserv, State Bank of India and Divi’s Lab were the top gainers on the Nifty 50, while HCL Tech, HDFC Life, Coal India, Ultratech Cement and Tech Mahindra were the top laggards.
S Ranganathan, Head of Research at LKP Securities said, "The day witnessed hectic activity in the PSU banking space, with stocks from 2-wheelers and consumer durables seeing good demand in line with the festive mood. While we did see a continuation of profit-booking in IT names, the Small & Midcap space was buzzing with accumulation across sectors. A late surge in the Metal Index led by aluminium stocks lent support to the rally.”
IT stocks drag
On the sectoral front, all indices except Nifty IT closed in the green.
Nifty PSU Bank recorded the highest gains closing 3.08 per cent higher, followed by Nifty Consumer Durables which was up 2.67 per cent at closing. Nifty FMCG was up 1.22 per cent.
Metal and auto stocks also gained. Nifty Metal was up 1.09 per cent at closing, while Nifty Auto was up 0.88 per cent. Meanwhile Nifty IT closed 0.88 per cent lower.
Broader indices
The broader indices also closed in the green, outperforming the benchmarks. Nifty Midcap 50 was up 0.85 per cent at closing, while Nifty Smallcap 50 was up 1.02 per cent. The S&P BSE Midcap was up 0.65 per cent, while the S&P BSE Smallcap was up 0.26 per cent.
The volatility index softened 1.47 per cent to end at 15.85.
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