Market broke the two-day losing streak and ended higher with Nifty above 17,300 led by buying across the sectors on Tuesday. Against this backdrop, the BSE Sensex index climbed 1,736 points, or 3,08 per cent, to end at 58,142 levels, off mildly from the day’s high level of 58,211. On the NSE, the Nifty50 reclaimed the 17,350-mark and closed at 17,352, up 510 points or 30.03 per cent. The index had touched a high of 17,375.
The broader market, though up in tandem with benchmarks, underperformed at the bourses. The BSE MidCap index gained 2.7 per cent and the BSE SmallCap index advanced around 2 per cent.
All broader Nifty indices were also in green, led by gains in Nifty 100, up 1 per cent. The volatility index had cooled off by 6 per cent. Sector-wise, the Nifty Auto, FMCG indices were prominent gainers, up 1.7 per cent each, while IT index was the top performer, up 2 per cent. Nifty PSU Bank and Consumer Durables were the next top gainers. Nifty Metal, down 0.5 per cent, meanwhile, was the sole loser.
The domestic indices recouped all the losses incurred yesterday, and were back in the green for the year, as reports of withdrawal of Russian troops from Ukranian border soothed investor nerves. Crude oil prices also dropped around 3 per cent in the later half of the session, providing further comfort to equity investors.
Vinod Nair, Head of Research at Geojit Financial Services, said: “A ray of hope that tension between Russian & Ukraine is de-escalating, prompting a smart recovery in global equities. The domestic market followed the trend as oil prices edged lower. India’s CPI inflation for January rose to 6.01% breaching RBI’s tolerance level due to high food inflation and low base effect, this will be a point of concern for domestic market in the near-term.”
The key benchmark indices started trade on a positive note providing some respite to investors after a day of heavy sell-off. “After rising from 7,500 to over 18,000, the Nifty has been consolidating since mid-October 2021. Looking at the fall of the last 30 days, it seems like the Nifty could further correct from present levels. Historically, it has been observed that February tends to be volatile, especially post Budget. It is possible for the Nifty to fall up to 15,800 level. However, the long-term structure of the Indian stock market is intact. We remain bullish in 2022 and beyond. Focus on adding quality stocks in the current fall,” said Amar Ambani, Yes Securities.
Global Cues
Overnight the US markets ended with marginal losses amid a highly volatile trading session. The Dow Jones slipped 0.5 per cent. The S&P 500 declined 0.4 per cent, and the Nasdaq was down 0.2 per cent.
Major markets in Asia witnessed largely subdued action this morning. Nikkei was down 0.4 per cent. Hang Seng and Straits Times were down 0.2 per cent and 0.1 per cent, respectively. Whereas, Taiwan was up 0.2 per cent while Shanghai Composite and Kospi were flat.
Oil prices scaled higher as the war threat loomed. Brent crude surged 2.5 per cent to $95.46 a barrel, and WTI crude futures jumped 2.2 per cent to $93.10, a barrel.
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