Sensex, Nifty zoom over 2.5 pc in surprise rally as global stocks advance
Benchmark indices Sensex and Nifty on Tuesday spurted by over 2.5 percent 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 percent to settle at over a one-week high of 54,318.47 points with all of its constituents closing with gains.
Benchmark indices Sensex and Nifty on Tuesday spurted by over 2.5 percent 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 percent to settle at over a 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 percent to 54,399.42.
The broader NSE Nifty rallied 417 points or 2.63 percent to finish at 16,259.30 points. All the 50 stocks advanced led by steel and energy stocks.
''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 percent, over 2.5 percent 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.
''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 percent on the back of improving global clues and Asian markets trading in the green. The metal sector was the top performer,'' said Rahul Sharma, Research Head, Equity 99.
In the broader market, the BSE smallcap gauge rallied 2.78 percent and the midcap index jumped 2.51 percent.
All BSE sectoral indices also ended higher, with metal jumping 7.62 percent, followed by basic materials (4.26 percent), energy (4.13 percent), oil and gas (3.52 percent), and telecom (3.31 percent), and industrials (3.14 percent).
A total of 2,624 stocks advanced, while 714 declined and 124 remained unchanged.
Hong Kong's Hang Seng gained 2.3 percent while the Nikkei 225 in Tokyo edged 0.2 percent higher. In Seoul, the Kospi rose 0.7 percent while Australia's S&P/ASX 200 added 0.2 percent. The Shanghai Composite index closed 0.2 percent 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 lackluster debut on stock exchanges, listing at over an 8 percent 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 percent to settle at 52,973.84 points. The Nifty went up by 60.15 points or 0.38 percent to finish at 15,842.30 points.
Meanwhile, international oil benchmark Brent crude gained 0.49 percent 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.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)