Sensex Jumps Over 500 Pts, Nifty Above 17,800

The benchmark indices cleared all the early losses in the afternoon trade and jumped higher led by advances in Energy and IT stocks. The Sensex gained over 600 points from its day's low of 59,127.04, while the Nifty-50 inched above 17,830 at the close of trading.

At closing, the frontline S&P BSE Sensex was up 445.66 points at 59,744.88, and the Nifty-50 was up 131.05 points at 17,822.30. The Sensex saw positive action in 20 scrips, while 10 counters declined in the 30-share kitty. IndusInd Bank was the top gainer in the pack, up over four per cent, while Bharti Airtel, HCL Tech, and Reliance Industries surged over two per cent each.

The broader markets also significantly contributed to the rally as both BSE Midcap and Smallcap indices closed higher by 84 and 154 points, respectively. Shares of GM Breweries, IG Petrochemicals, Patel Engineering, and AFL were the top gainers in the Smallcap space as the counters gained 20 per cent each, while Aditya Birla Fashion and Tata Power were the top gainers in the Midcap space, up over six per cent each.

The Energy sector was the most active and contributed the most in the rally. The sector was in major focus post a surge in the crude oil and gas prices, said experts.

Santosh Meena, Head of Research, Swastika Investmart, said, "Oil and Gas stocks strong are witnessing a strong rally amid a sharp surge in crude oil and Natural Gas prices."

Shares of Reliance Industries gained over two per cent in the day's trade being the top index contributer. The scrip hit a fresh record high of Rs 2,612, up Rs 56, or 2.12 per cent. ONGC and Tata Power also gained 10 and six per cent, respectively in the day's trade on Tuesday.

Comparing the other sectors, only Pharma, Banks, and Auto counters ended in the green, while all other sectors saw selling pressure. The IT index rallied mostly in the afternoon session ahead of Q2 results of companies like TCS and Infosys. Shares of HCL Tech, Oracle Financial Services, and MphasiS advanced between 1-2 per cent each.

Moving forward, experts feel that the markets are giving in a good recovery and the dips are being bought into which can further lead to higher levels in the upcoming days. The Q2FY21 and the outcome from the Monetary Policy meet will further provide direction to the markets, said experts.

Looking at the technical factors, the Nifty attempted to trade above 17,700 and closed above 17,800 today. If the index continues to trade above 17,800, one can expect 18,000 in the upcoming sessions, said analysts.

Ashis Biswas, Head of Technical Research, CapitalVia Global Research, said, "If the market is able to sustain the level of 17800, it can witness higher levels of 18000."

In the overall market breadth today, 2025 shares advanced, 1184 shares declined, and 154 shares were unchanged.