Global cues, a moderately rebounding rupee and hopes of good monsoon led key Indian equity indices to end the day’s trade on a firm note on Tuesday, while recovering considerably from the last week’s Brexit hangover.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,410.66 points, closed at 26,524.55 points -- up 121.59 points or 0.46% -- from the previous close at 26,402.96 points.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up to 8,127.85 points -- up 33.15 points or 0.41% .
The Sensex touched a high of 26,583.33 points and a low of 26,378.46 points during the intra-day trade.
The BSE market breadth was tilted in favour of the bulls -- with 1,606 advances and 1,000 declines.
Healthy buying was particularly witnessed in sectors like telecom, fast moving consumer goods (FMCG) and metal.
On Monday, the key indices ended flat due to profit booking and an endeavour to recover from the Brexit. The barometer index inched up by 5.25 points or 0.02%, while the Nifty was up 6.10 points, or 0.08%.
Initially on Tuesday, the key indices opened on a flat note -- marginally in the green -- taking cues from the global markets. Later during the day, however, the markets were able to absorb the uncertainities raised by the European Union referendum and recover from the previous day’s low.
{{/usCountry}}Initially on Tuesday, the key indices opened on a flat note -- marginally in the green -- taking cues from the global markets. Later during the day, however, the markets were able to absorb the uncertainities raised by the European Union referendum and recover from the previous day’s low.
{{/usCountry}}The European markets recovered slightly ahead of the commencement of a two-day European Council meet. The Asian markets, too, were able to brush off some of their early losses that Brexit triggered.
The rupee showed some recovery ahead of the F&O (Futures and Options) expiry of June contracts on Tuesday. Hopes of a healthy monsoon and higher global crude oil prices also contributed to the firm closing of the benchmark indices.
The Indian markets are still expected to remain cautious ahead of some major industrial data to be released later during the week.
“Prices being supported on the lower side, the second day of markets ended in a recovery. Asian markets were also largely positive,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
“The rupee has also managed to come closer to its 68 (to the US dollar) mark, after some initial losses,” he said, adding: “Crude’s rise by almost 3% also seemed to support positive sentiments. IMD’s report that 51% of India’s area has received normal rainfall added to belief that domestic cues remain supportive.”
According to Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services, a strong rupee and consolidation in oil price below $50 provided a fillip to the market with the midcap stocks outperforming.
In terms of investments, the provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 190.43 crore, and the domestic institutional investors (DIIs) divested scrip worth Rs 242.71 crore.
Sector-wise, the S&P BSE telecom index surged by 2.26%, followed by the FMCG index, which rose by 1.75%; and the metal index gained by 1.01%.
On the other hand, the IT (information technology) index fell by 0.89%, followed by the TECK (media, entertainment and technology) index, which slipped by 0.46%, and the consumer durables index dipped by 0.08%.
Major Sensex gainers during Tuesday’s trade were: Lupin, up 4.39% at Rs 1,543.30; Hindustan Unilever (HUL), up 3.25% at Rs 887.75; ITC, up 2.59% at Rs 368.35; Cipla, up 1.61% at Rs 496.85; and Coal India, up 1.43% at Rs 313.15.
Major Sensex losers were: Tata Motors, down 1.84% at Rs 440.35; Tata Consultancy Services (TCS), down 1.34% at Rs 2,461.80; Wipro, down 1.22% at Rs 542.40; Sun Pharmaceuticals, down 0.99% at Rs 766.20; and Hero MotoCorp, down 0.95% at Rs 3,025.50.