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Strong Buying In IT And Auto Stocks Led The Benchmark Indices To Close Higher On Tuesday

Ruchit Purohit Mar 02, 2021

Following the positive global cues and strong buying in Auto and IT sector, markets ended higher with strong gains on Tuesday, March 2. Sensex crossed 50,000 in the early trade session and managed to stay above that level throughout the day.

Strong buying in IT and Auto stocks boosted the rally today in the markets. The Auto sector is fueled by better-than-expected numbers in the sales for the month of February. On the other hand, technology stocks have been rallying in the global markets too and has equally lifted the sector in the Indian markets, say analysts.

The BSE Sensex closed higher by 447 points or 0.90 per cent at 50,296.89 and the NSE index closed at 14,919.10, up 157 points or 1.07 per cent. Out of 30 stocks in the BSE index, 25 stocks closed with gains and lifted the index above 50,000.

In the broader front today, the 100-share Nifty Midcap witnessed a tremendous surge by adding over 14 per cent or 2,995 points at 24,086.85. Adani Power and Adani Total Gas added over nine per cent each and JSW energy contributed the most by surging over 16 per cent.

Shares of M&M surged over four per cent today in the intraday session and reached the day's high of Rs 868 after the company reported a 25 per cent increase in tractor sales for the previous month. Tata Motors also added over five per cent in the intraday trade. Overall, the Auto sector in the BSE index gained 3.8 per cent.

L&T Infotech, Mindtree, Infosys and Tech Mahindra accounted to the top gainers in the IT sector today. The Nifty IT index marked its highest single day gains since January 11.

The NSE index overall recorded 658 declines too with ONGC, HDFC and Dr. Reddy's Labs making to the top losers at closing.

In the BSE, all sectoral indices closed green at the end of the day. BSE Auto and BSE IT added over 700 points each. Smallcap and Midcap indices closed higher by 1.60 and 1.55 per cent respectively.

Tracking recent performances in the technology and FMCG sector, analysts stay bullish on the two sectors and suggest the participants to focus more in these sectors.