JOIN USSensex zooms 1,345 pts to reclaim 54,000 mark amid global stocks rally
Benchmark indices Sensex and Nifty on Tuesday spurted by over 2.5 per cent to log their best single-day gains in three months, propelled by heavy buying in metal, energy and banking stocks amid a global rally in stocks.
The 30-share BSE benchmark zoomed 1,344.63 points or 2.54 per cent to settle at over one-week high of 54,318.47 points with all of its constituents closing with gains. During the day, it jumped 1,425.58 points or 2.69 per cent to 54,399.42.
The broader NSE Nifty rallied 417 points or 2.63 per cent to finish at 16,259.30 points. All the 50 stocks advanced led by steel and energy stocks.
Both Sensex and Nifty notched their best single-day gain since February 15.
"A ferocious up-move from the metal index lifted Reliance together with other sectoral indices, leaving bears gasping and covering short positions and looking out for reasons for the rally," S Ranganathan, Head of Research at LKP securities, said.
On a day when WPI for April crossed 15 per cent, over 2.5 per cent rise in benchmark indices coupled with the breadth of the rally surprised many on the street despite the move coming after a relentless fall, Ranganathan added.
Among Sensex stocks, Tata Steel emerged as lead gainer, rising by 7.62 per cent.
The most valuable company Reliance zoomed 4.26 per cent, helping Sensex to close at over one-week high.
Among others, Infosys, ITC, Larsen & Toubro, Wipro, ICICI Bank, HCL Technologies, Bajaj Finance, SBI and Maruti also added to the rally.
"After a long gap, the market has witnessed a strong resilience supported by heavyweights and broader markets. The market was trading at oversold territory and was inspired by optimism in the Asian markets," said Vinod Nair, Head of Research at Geojit Financial Services.
"Indian markets made a superb comeback today gaining over 2.5 per cent on back of improving global clues and asian markets trading in the green. Metal sector was the top performer," said Rahul Sharma, Research Head, Equity 99.
In the broader market, the BSE smallcap gauge rallied 2.78 per cent and midcap index jumped 2.51 per cent.
All BSE sectoral indices also ended higher, with metal jumping 7.62 per cent, followed by basic materials (4.26 per cent), energy (4.13 per cent), oil and gas (3.52 per cent), telecom (3.31 per cent) and industrials (3.14 per cent).
A total of 2,624 stocks advanced, while 714 declined and 124 remained unchanged.
Asian markets ended higher on expectations of easing of Covid-19-related restrictions by China as no new case was reported in Shanghai in last three days.
Hong Kong's Hang Seng gained 2.3 per cent while the Nikkei 225 in Tokyo edged 0.2 per cent higher. In Seoul, the Kospi rose 0.7 per cent while Australia's S&P/ASX 200 added 0.2 per cent. The Shanghai Composite index closed 0.2 per cent higher.
Investors also are watching for comments by Federal Reserve officials that might provide insight into the US economic outlook and future policy moves.
Equity exchanges in Europe were trading in the green in the afternoon session. Stock exchanges in the US had ended on a mixed note on Monday.
The country's largest insurer LIC on Tuesday made a lacklustre debut on stock exchanges, listing at over 8 per cent discount after a successful initial public offering (IPO) which fetched Rs 20,557 crore to the exchequer.
In the previous trade, the BSE benchmark gained 180.22 points or 0.34 per cent to settle at 52,973.84 points. The Nifty went up by 60.15 points or 0.38 per cent to finish at 15,842.30 points.
Meanwhile, international oil benchmark Brent crude gained 0.49 per cent to USD 114.8 per barrel.
Foreign institutional investors continued to offload shares worth Rs 1,788.93 crore on Monday, according to stock exchange data.