The domestic benchmark indices ended with solid gains on Tuesday amid surge in buying activities in the final hour of day’s trade, following strong cues from European markets. The gain in index heavyweights such as Reliance Industries and other energy companies along with IT stocks also supported the market.
Earlier today, the BSE benchmark Sensex opened lower amid mixed global cues and declined as much as 362 points to hit an intraday low of 56,930 levels. However, the 30-share index rebounded 1,059 points to close at 57,989, up 697 points or 1.22%. In a similar trend, the 50-share Nifty closed at 17,315.5, up 198 points or 1.16 %, after hitting a high and low of 17,334 and 17,006, respectively.
The broader market ended with marginal gains, with the BSE midcap index adding 0.17%. The BSE smallcap index closed 0.15% higher.
The overall market breadth on the BSE was negative, with 2,023 shares declining out of a total of 3,669 traded stocks. As many as 1,500 shares advanced and 146 were unchanged.
“The domestic market started with a negative bias taking cues from rising crude prices and hawkish signals from the Fed on aggressive policy tightening. However, the trend reversed as European markets opened on a positive note buoyed by hope that Ukraine may consider working towards a truce,” says Vinod Nair, head of research at Geojit Financial Services.
Top gainers and losers
Out of the top 30 stocks on the BSE Sensex pack, 26 closed in green while the remaining settled in the red zone. IT heavyweight Tech Mahindra was the best performer was a 3.83% gain, followed by Reliance Industries, which ended 2.59% higher.
The other notable gainers include Bajaj Finserv, ITC, Tata Consultancy Services (TCS), Kotak Mahindra Bank, Infosys and Power Grid Corporation.
On the losing side, FMCG major Hindustan Unilever Ltd (HUL) was the worst performer with a 2.8% loss. Among others, Nestle India dropped 2.5%, while NTPC and Sun Pharmaceutical Industries settled with marginal losses.
Energy, IT space
On the sectoral front, oil and gas and IT indices gained the most, while realty and FMCG were among the biggest losers.
The BSE oil and gas index closed 1.94% higher, led by Adani Total Gas, BPCL, Reliance Industries, Indian Oil Corporation, and ONGC. The state-run oil companies have raised petrol and diesel pump prices by ₹0.8 per litre today in the backdrop of the recent rise in international crude prices. This is the first fuel price hike since November 2, 2021.
The BSE IT index rose 1.93%, supported by gains in NIIT, Cybertech Systems & Software, Aptech, Cyient, and Hinduja Global Solutions.
Meanwhile, the reality and FMCG space witnessed a surge in selling activities, falling 1.06% and 0.7%, respectively.
Global stocks edge higher
Shares in the Asia-Pacific region and in Europe traded higher on Tuesday as investors eyed the Russia-Ukraine war amid ongoing peace talks between the two countries. Traders also evaluated the U.S. Federal Reserve chair Jerome Powell’s hawkish tone on monetary policy and rally in oil prices as European Union countries pushed for more sanctions on Russia.
In the Asia-Pacific region, barring Singapore, all markets closed higher. Regional heavyweight Hong Kong’s Hang Seng Index was the best performer with a 3.15% gain, followed by Japan’s Nikkei 225, which rallied 1.5%. South Korea’s KOSPI climbed 0.9%, ASX 200 index in Australia rose 0.85%, and Thailand’s SET Composite added 0.24%.
Bucking the trend, the Straits Times Index in Singapore shed 0.16%, and Taiwan's Weighted ended flat with negative bias. In mainland China, the Shenzhen Component dropped 0.4%, while the Shanghai Composite rose 0.2%.
Meanwhile, European markets were also flashing green in opening trades. Germany’s DAX surged 0.9% and the U.K.’s FTSE 100 index jumped 0.5%. France’s CAC index climbed 0.6%, while Spain’s IBEX 35 gained 0.3% in early deals.