Nifty, Sensex Rebound As IT Stocks, L&T Rally: Market Wrap
The NSE Nifty 50 closed up 0.77%, while the S&P BSE Sensex advanced 0.68% on Tuesday.
Indian benchmark equity indices ended higher on Tuesday, with shares of information technology companies contributing the most to gains.
The NSE Nifty 50 closed 157.7 points, or 0.72%, higher at 21,929.4, while the S&P BSE Sensex rose 454.67 points, or 0.63%, to close at 72,186.09.
Intraday, Nifty gained as much as 0.83% and Sensex rose as much as 0.7%.
Despite strong market momentum intraday, profit booking was seen in banking stocks, according to Shrikant Chouhan, head of equity research at Kotak Securities Ltd.
"Technically, after an early morning intraday correction, the Nifty took support near 21,700 and reversed sharply. From the day’s lowest point, the market rallied over 210 points," Chouhan said.
Globally, European stocks rose, while global bond markets steadied after the biggest two-day selloff in months. S&P 500 futures rose marginally by 0.1%, while Nasdaq 100 futures rose by 0.3%. In Europe, the Stoxx 600 benchmark climbed 0.5%. Futures contracts for the S&P 500 added 0.1%.
Chinese equities soared on speculation that authorities were planning more forceful efforts to end the rout. The Hang Seng China Enterprises Index jumped almost 5%.
"We are of the view that as long as the index is trading above 21,700, the positive momentum is likely to continue. Above the same, the index could rally to 22,100; further upside may also continue, which could lift the index to 22,200. On the flip side, below 21,700, traders may prefer to exit out of the trading long position," Chouhan said.
Shares of HCL Technologies Ltd., Infosys Ltd., Larsen and Toubro Ltd., Maruti Suzuki Ltd. and Tata Consultancy Services Ltd. positively contributed to the Nifty.
Whereas, Axis Bank Ltd., ITC Ltd., Power Grid Corp. of India, Kotak Mahindra Bank Ltd. and Reliance Industries Ltd. weighed on the index.
Sectorally, Nifty IT and Nifty Oil and Gas advanced the most, while Nifty PSU Banks and FMCG declined.
The broader markets outperformed as the BSE MidCap rose 1.06%, while the BSE SmallCap was 1.23% higher.
Sixteen of the 20 sectors compiled by BSE advanced, while four declined.
The market breadth was skewed in favour of buyers. About 2,354 stocks advanced, 1,504 declined, and 86 remained unchanged on the BSE.
