Indian Stocks End Higher On Tuesday, Lifted By Gains In Energy, Metal

Tracking gains from Asian peers, Indian equity indices closed higher on Tuesday lifted by gains in energy and metal companies after cooler-than-expected US inflation data further boosted bets of interest rate cuts by the Federal Reserve next year.

The 30-share BSE benchmark Sensex surged 230 points or 0.32 per cent to settle at 71,337. The broader NSE Nifty advanced 97 points or 0.45 per cent to end at 21,499.15.

From the Sensex pack, NTPC, M&M, Wipro, Kotak Bank and Tata Steel closed in the green, while Bajaj Finance, Bajaj Finserv, Infosys, TCS and Tata Motors closed in the red.

Sector-wise, Nifty Oil & Gas rose 1.5 per cent and Nifty Healthcare surged 1.25 per cent. Nifty FMCG, auto, bank, pharma and metal closed higher. In the broader market, Nifty Midcap100 gained 0.65 per cent, while Smallcap100 surged 0.14 per cent.

Meanwhile, the market capitalisation of all listed companies on BSE surged by Rs 2.17 lakh crore to Rs 358.95 lakh crore. The market breadth was skewed in the favour of the bulls. About 2,292 stocks gained, 1599 declined and 139 remained unchanged on the BSE.

FII and FPIs, on Tuesday, saw a net sales of Rs 95.20 crore in the cash segment. A total of Rs 6,269.35 crore was sold against a total purchase of Rs 6,174.15 crore. Domestic institutional investors saw a net purchase of Rs 167.04 crore in the cash segment. A total of Rs 8,663.00 crore was sold against a total purchase of Rs 8,830.04 crore.

Meanwhile, In this record storm of bullishness, the unbridled storm of bullishness seen in many stocks and cash stocks from large-cap to mid-cap and small-cap companies has reached a very dangerous level. Without fundamentals, companies' stocks were subjected to unabated extraordinary gains. It was necessary to install a speed breaker to prevent a car running without this brake from causing a major accident. Last week, with a shock of 930 points in the Sensex and a shock of 1500 points in the mid-cap, small-cap index, the overheated small, mid-cap stocks were braked. The stock market may consolidate at current levels in the last five days of this year.

Technically, the important key resistances placed in October Nifty future are at 21,499 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional upmove with immediate resistances seen at 21,606 – 21,676 levels. Immediate support is placed at 21,404 – 21,203 levels.