Mumbai, (Samajweekly) India’s key equity indices — S&P BSE Sensex and NSE Nifty50 — made gains on the back of a gradual rebound on hopes of healthy macro-economic data during Tuesday’s trade session.
Initially, equity indices had a gap-up opening after which it made an intraday-high in the first 10 minutes of the day. They later fell in line with other Asian markets and touched a low at noon.
A gradual recovery followed.
Globally, a sell-off in global stocks continued into Tuesday on signs that soaring energy prices have put a dampener on economic growth, while inflation and policy-tightening fears sent short-dated US Treasury yields to 18-month highs.
Among sectors, consumer durables, metals and FMCG indices rose the most, whereas IT and telecom indices fell the most.
Besides, the Indian rupee extended a bout of weakness to fall to a low of 75.65 against the US dollar.
Consequently, the 30-scrip Sensex traded at 60,284.31 points, down 148.53 points, or 0.25 per cent, from its previous close.
The NSE Nifty50 ended at 17,991.95 points, up by 46 points, or 0.26 per cent.
“Nifty has closed at the highest ever closer to 18,000 levels. Advance decline ratio improved as the day progressed to above 1:1,” HDFC Securities’ Head of Retail Research, Deepak Jasani, said.
“The upward momentum could continue with some intermittent profit taking. Subdued sentiments in the global markets could however slow this momentum.”
Motilal Oswal Financial Services’ Head of Retail Research Siddhartha Khemka said: “Market continues to remain in upward trajectory as macroeconomic trends report good recovery, with high-frequency indicators improving month-on-month.”
“Exports have emerged as a growth engine-India reported the highest ever export in a single quarter. Non-oil, non-gold imports grew 40 per cent YoY, indicating strong domestic demand.”
LKP Securities Head of research S. Ranganathan said: “The day witnessed hectic activity in 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 and midcap space was buzzing with accumulation across sectors. A late surge in the metal index led by aluminium stocks lent support to the rally.”
