Indian equities staged a strong recovery on Tuesday tracking positive trends in global markets, while the Indian rupee found some strength after three sessions of losses as crude oil prices eased on demand concerns.
The Indian rupee ended 8 paise higher at 76.56 against the US dollar. In the previous three sessions, the Indian unit had shed 47 paise against the greenback.
Snapping their two-session losing streak, the BSE Sensex surged 777 points to close above the 57,000-level and the NSE Nifty recaptured the key 17,200-mark on Tuesday as emergence of buying in Asian markets lifted sentiment on domestic bourses.
After opening above 57,000, the BSE gauge consolidated gains as the trade progressed and touched the day’s high at 57,442. After easing some gains, the 30-share index finally settled at 57,356.61 – showing a rise of 776.72 points or 1.37 percent.
Likewise, the NSE Nifty ended at 17,200.80, reflecting a gain of 246.85 points or 1.46 percent.
On the Sensex chart, barring Axis Bank, Asian Paint, Maruti and TCS, all shares closed in the green.
PowerGrid, Titan, Mahindra and Mahindra, IndusInd bank and Bajaj Finance were top five gainers on the Sensex.
All the 19 sectoral indices ended in the green with Power, Realty, Utilities, Auto and Consumer Durables indexes rose in the range of 2.22 to 3.63 percent.
“Strong buying interest from domestic investors and positive global trend resulted in a rebound. But volatility persists due to lockdown in China, Russia-Ukraine war and rate hikes,” said Vinod Nair, Head of Research at Geojit Financial Services.
“In a range bound market, it is advised to stick with sectors which are expected to be least impacted by inflation and rising bond yield, banking, IT, pharma and themes like green energy,” he added.
Foreign investors on Monday sold equities worth Rs 3,302.85 crore on a net basis in the Indian capital market, provisional data showed.
Factors that influenced markets on Tuesday:
Global market trends:
Indian stocks took cues from Asian peers and US equities to trade higher on Tuesday, even as investors treaded cautiously in view of Covid situation in China and likely aggressive Fed tightening.
Crude oil prices:
Global crude oil prices turned lower on Tuesday as China’s Covid curbs continued to fan demand worries for oil producers. Brent crude futures were down at $101.76 a barrel, while US West Texas Intermediate contracts were down at $97.72 per barrel.
Strong buying by DIIs:
Domestic institutional investors continued to show their confidence in Indian equities at a time when foreign investors seemed jittery about maintaining positions in the domestic capital market.
DIIs bought equities worth Rs 1,643.84 crore on a net basis, while FIIs sold shares worth Rs 1,174.05 crore on Tuesday, provisional exchange data showed.
