Bulls took complete charge of markets on Tuesday. After a gap up opening, benchmarks extended gains throughout the day, ending on a high note.

The rally was led by IT, metal and pharma stocks.

The BSE Sensex reclaimed the 50,000-mark for the first time since March 23. The Sensex after touching an intraday high of 50,268.45, closed at 50,136.58, up 1,128.08 points or 2.30 per cent. It hit an intraday low of 49,331.68.

Similarly, the Nifty 50, closed near the day’s high of 14,876.30, at 14,845.10, up 337.80 points or 2.33 per cent. It hit an intraday low of 14,617.60.

Binod Modi, Head Strategy at Reliance Securities, said, “Domestic equities rebounded sharply today mainly led by strong buying in IT, Metals, Pharma and FMCG stocks. Further, favourable cues from global markets also supported domestic rally despite the prevailing concern of sharp rise in Covid-19 cases in the various parts of the country.”

UPL, JSW Steel, Tata Steel, Shree Cements and Wipro were among the top gainers on the Nifty 50 while Hindalco, Mahindra & Mahindra, Axis Bank and Bharti Airtel were among the laggards.

As many as 1,562 shares have advanced on the BSE, while 1,392 declined and 208 remain unchanged. As many as 146 securities hit their 52-week high while 71 their 52-week low.

However, as compared to 254 securities that hit the upper circuit, 336 hit the lower circuit on the BSE, signalling some pressure on the broader market.

Market may remain volatile

Analysts have warned that the market is likely to remain volatile owing to the ongoing concerns related to the increase in Covid-19 cases in the country. Though overall, the outlook remains positive.

Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities, said, “The Nifty-50 has again gone above the 50 DMA led by gains in high quality stocks. Except for today’s depreciation, the INR has remained quite steady even though the Dollar Index rose. Also when the US 10 Year bond yields has spiked sharply India’s 10 Year Bond Yield has remained quite stable. These two factors could act in India’s favour and help Indian equities outperform its peers in the emerging markets.”

“Recent correction could be due to rising Covid cases and year-end phenomenon wherein retail and HNI investors would have avoided taking any fresh positions. The start of new settlement for FY22 and forthcoming Q4 earnings seasons could be the reasons for fresh investor interest in stocks,” added Oza.

IT stocks back in focus, Metal stocks shine

Among the sectoral indices, all indices except Nifty Realty closed in the green. Nifty IT recorded the highest gains and closed 2.90 per cent higher, followed by Nifty Metal which was up 2.79. Nifty Pharma and Nifty FMCG were up 2.72 per cent and 2.25 per cent, respectively.

The Nifty Realty recorded marginal losses and was down 0.03 per cent at closing.

Broader indices in the green

All broader indices closed in the green as well, gaining further in the second half. Nifty Midcap 50 was up 1.21 per cent at closing while Nifty Smallcap 50 was up 1.49 per cent. The S&P BSE Midcap was up 0.98 per cent at closing while the S&P BSE Smallcap was up 1.30 per cent.

With the market recording high gains, the fear gauge, volatility index was down 0.62 per cent to 20.52.

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