Sensex up more than 696 pts at close, Nifty breaks above 17,300 amid volatility

Benchmarks rebounded strongly from early losses to close more than 1% higher on Tuesday.

The market opened on a subdued note amid weak global signals and fell further during the morning session amid concerns over rising crude oil prices. The indices closed higher, indicating buying activity on several counters.

The BSE Sensex closed at 57,989.30, up 696.81 points or 1.22%. It recorded an intraday high of 58,052.87 and a low of 56,930.30. The Nifty 50 closed at 17,315.50, up 197.90 points or 1.16%, near the day’s high of 17,334.40. It recorded an intraday low of 17,006.30.

Expanse favors decliners

The breadth of the market, however, remained in favor of the decliners with 1,780 stocks down on BSE versus 1,629 rising while 104 remained unchanged. Additionally, 19 stocks reached the upper circuit compared to the two stocks stuck in the lower circuit. Additionally, 127 stocks hit a 52-week high and 35 hit a 52-week low.

Rahul Sharma, head of research at Equity 99, said: “We have seen a good rebound in the markets, driven by the purchases of Reliance and HDFC. The market rally after the morning drop is a good sign for the Indian market.

“In the coming days, we still expect volatility to persist until the Russia-Ukraine war situation and crude prices stabilize. Investors should closely monitor rising prices. Covid cases lately, as we may see a third wave in the next few days.

The market is watching developments closely and seeking clarification on the Russia-Ukraine crisis and the US Fed, analysts said.

Vinod Nair, head of research at Geojit Financial Services, said: “The domestic market started with a negative bias, taking inspiration from rising crude prices and hawkish signals from the Fed about aggressive policy tightening. However, the tide turned as European markets opened on a positive note, buoyed by hopes that Ukraine might consider working towards a truce.”

Tech Mahindra, BPCL, Tata Motors, Reliance and Bajaj Finserv were the top winners of the Nifty 50, while Hindustan Unilever, Nestle India, Britannia, Cipla and Eicher Motor were the main laggards.

FMCG, real estate, pharmaceutical dredge

Sector-wise, while FMCG, real estate and pharmaceuticals lagged, IT, automotive, oil & gas and financials were concentrated.

Nifty Realty was down more than 1% at the close. Nifty FMCG and Nifty Consumer Durables closed down 0.7% each. Nifty Pharma and Nifty Healthcare Index each fell nearly 0.3%.

Meanwhile, Nifty IT and Nifty Oil & Gas closed up almost 2% each. Nifty Auto was up more than 1%. Nifty Bank, Nifty Financial Services and Nifty Private Bank each rose nearly 1%.

Larger clues

The broader market also rebounded, with the broader indices closing in the green.

Nifty Midcap 50 rose 0.40% while Nifty Smallcap 50 rose 0.55%. The S&P BSE Midcap rose 0.17% while the S&P BSE Smallcap rose 0.15%.

The volatility index fell 2.24% to 24.07.

Published on

March 22, 2022

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