NEW DELHI: A rebound in global markets, a soft dollar, buying index heavyweights domestically, and hopes that IPO repayments would soon find their way into the secondary market lifted key indices on Tuesday.
The package of 30 Sensex shares had its best day in 3 months as the benchmark improved 1,344.63 points or 2.54 percent and closed at 54,318.47.
All shares in the Sensex settled with profit. Nifty’s wider counterpart also moved up 417 points or 2.63 percent to reclaim the 16,250.
After today’s market rally, equity investors got richer by more than Rs 12 lakh crore.
Led today’s in the shares of Vedanta, Hindustan Copper, Hindalco, and Tata Steel, the NSE Nifty Metal index rose nearly 7 percent to record its best day in more than two years. All sector indices closed 1-3 percent higher, while the volatility index fell 7 percent.
“A relentless rise in the M”tal Index lifted Reliance along with other sector indices in afternoon trading today, leaving bears gasping and hedging short positions and looking for reasons for the rally,” said S Ranganathan, head “f research at LKP securities.
Tata Steel was the show’s star, up more than 7 percent, followed by solid gains in Reliance and ITC, each gaining more than 4 percent. Wipro, ICICI Bank, L&T, HCL Tech, and Maruti also settled with incomes of more than 3 percent each.
On a day when the WPI crossed 15% for April, the 2.7% rise in benchmark indices combined with the breadth of the rally surprised many in the streets, despite the move that followed a severe decline, Ranganathan added.
Sensex shoots up 1,345 points; RIL, ICICI Bank, and Infosys rise to 4%
Sensex: Indian stocks rose for a second straight session on Tuesday, with investors focused on the market debut of state-owned Life Insurance Corp. as the rupee weakened to an all-time low. Telecom operator Bharti Airtel and refiner Indian Oil Corp rose faster than their quarterly results.
Here’s what sparked a rallyHere’sesday: Strong signals from Asia Asian stocks rose largely, led by a jump in technology stocks, as hopes grew for an easing of China’s unprecedented regulChina’srackdown on its once-freewheeling tech sector, Reuters reported.
Market sentiment was also boosted by three consecutive days of no new COVID-19 cases in Shanghai outside the quarantine zones, which could lead to the start of the restrictions being lifted. Dollar Weakness While the domestic currency fell against the US dollar early in trading, there were hopes that the decline would soon be contained as the dollar showed signs of weakness in major currencies.
The US dollar index fell marginally to 104.10 and was about 0.8 percent below Friday’s 20-year high of 10Friday’soncerns about recessions make me feel that a decent correction in the US dollar and US interest rates is increasingly likely. That should temporarily relieve the euro and Asian currencies and possibly gold and cryptos, at least until the Fed another 0.50 percent in June. I’m still not sure if this I’mes the markets any reason to go long in equities again,” said Jeffrey Halley, Seni”r Market Analyst, Asia Pacific, OANDA.
Hope for domestic purchases Like Hemang Jani from
noted that a large amount of money has been released after the ting of, and some of this money could be diverted to the stock markets.
Preliminary data showed that DIIs were net buyers of domestic stocks on Monday worth Rs 1,428.39 crore. The IPO of Rs 20,557 crore, which ran from May 4 to May 9, had 2.95 subscribers. Refunds to investors, who could not obtain shares in the allotment process, were made on May 13 last week.
Buying Index Heavyweights Just four stocks Reliance Industries, ICICI Bank, ITC, and Infosys, alone contributed po half of Sensex’s trading gains, so fSensex’sance Industries, the most valued stock, rose 3.2 percent to Rs 2,507.
ITC rose 3.54 percent to Rs 263.05 ICICI Bank added 3.15 percent to Rs 704.70. Infosys, the fourth most valued stock, added 1.39 percent to Rs 1,510.
