Sensex Closed Higher by 1128 Points Led by IT and Metal Stocks
The benchmarks snapped the lackluster momentum of march series and closed with major gains for the second consecutive session on Tuesday as the IT, Metal, and index heavyweights HDFC twins lifted the indices and pushed the BSE Sensex above 50,000. On the investor sentiment, domestic investors have turned net buyers in the markets giving the strong outcome expected from forthcoming Q4 earnings and new settlement for FY22, said, analysts.
The Steel and IT stocks led the bull-run in today’s market while the FMCG joined the party in the afternoon session and led the Sensex to close at 50,136.58, higher by 1,128.08 points or 2.30 per cent, while the key index Nifty-50 closed higher by 337.80 points at 14,845.10. Experts in the market said that Nifty-50 can scale around 15,300 if the index breaks 14,900 levels in upcoming sessions.
HDFC Bank, HCL Tech, and Infosys gained four per cent each and bagged the top value contributors for the BSE Sensex on Tuesday and boosted the index to climb over 1200 points in the intraday session.
Shares of UPL, JSW Steel, and Tata Steel were other index gainers at market closing. In the entire session, around 1529 shares closed with gains, and 1386 shares closed with losses.
Among the sectors, IT, FMCG, Metal, and Pharma indices rallied over 2-3 per cent as bulls dominated the sentiment across the board.
The Nifty IT index rallied nearly four per cent as the dollar strengthened against the rupee which boosted the index as the major portion of revenues in the sector comes in the dollar. Shares of COFORGE, Mindtree, and Infosys surged nearly six per cent in the day's trade.
However, shares of M&M, Axis Bank and Hindalco ended the day with losses and stood as the top losers of the index.
Earlier today, Rakesh Jhunjhunwala-backed Nazara Technologies listed at a premium of 81 per cent against its issue price of Rs 1,101. The stock listed at Rs 1,990 on the NSE and Rs 1,971 on the BSE.
Moving further, experts feel that global peers and also further deterioration in the Covid situation will be keenly monitored by the market participants. Strengthening U.S dollar and Bond yields can also act as a headwind to the short-term recovery in the market and hence experts suggest investors to remain cautious and take a sector-specific stance.
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