India’s benchmark equity index S&P BSE Sensex on Tuesday reclaimed the 50,000 points-mark on the back of healthy buying in automobile and IT counters.
Accordingly, after recovering from the sell-off seen in the morning the two indices closed higher for the second consecutive day.
Globally, Asia stocks reversed course giving up morning gains, while European stocks fell on risk of asset bubbles in foreign markets and a recent bond market sell-off along with lower commodity prices.
In the domestic market, auto, IT, FMCG, pharma stocks gained the most, while PSU bank index ended in the negative.
Consequently, the S&P BSE Sensex gained 447.05 points, or 0.90 per cent to 50,296.89 points from the previous close of 49,849.84.
The NSE Nifty50 on the National Stock Exchange closed at 14,919.10, gaining 157.55 points, or 1.07 per cent, from its previous close.
“Nifty has entered the downgap area of 14,919-15,065 raising hopes of further upmove. Advance decline ratio also rose in line with the uppishness in the Nifty. 14,782 on the downside is a crucial level to defend,” said Deepak Jasani, Retail Research Head at HDFC Securities.
According to Vinod Nair, Head of Research at Geojit Financial Services: “Indian market witnessed a positive opening backed by a strong US market due to steady treasury bond yields, but the market pared its gains as Asian peers traded weakly.”
“A quick recovery was seen towards the end of the session as investors hurried to buy on dips showing huge confidence and liquidity in the market. An improved outlook post-February auto sales numbers resulted in continued buying in auto stocks with the IT sector also being a major contributor in the rally.”
In addition, S. Ranganathan, Head of Research at LKP Securities said: “Markets exhibited buoyancy today despite its share of volatility in Tuesday’s afternoon trade. IT stocks and auto stocks led the rally while the broader market saw keen interest in paper stocks on rising product prices.”