The Sensex emerged 1,736.21 points or 3.08 per cent to close the day at 58,142.05, and the Nifty rose 509.70 to 17,352.50.
European stocks and U.S. futures climbed on Tuesday after a report fuelled idealism that Russia is de-escalating tensions with Ukraine. Russia said that the forces deployed close to Ukraine have started retreating to their bases. The development comes after Moscow’s military buildup around Ukrainian lines prodded fears of an imminent invasion by Russia. Therefore, the retreating forces around and easing oil prices cheered up the markets on Tuesday.
Indian equities rebounded today to close higher after a sell-off on Monday. Gains on homegrown bourses were driven by banks, auto, IT, metal, and FMCG stocks.
The Sensex emerged with 1,736.21 points or 3.08 per cent to close the day at 58,142.05, and the Nifty rose 509.70 to 17,352.50.
“Post yesterday’s sharp sell-off, the Nifty index started on a positive note and consolidated within a range for the first hour of the trade. However, the index started recovering from the lows and as the day progressed, the momentum accelerated to mark a stunning rally and end the session above 17350 with gains of 3 percent,” said Ruchit Jain, Lead Research, 5paisa.com.
On the Nifty, Tata Motors, Eicher Motors, Bajaj Finance, Shree Cements and Hero MotoCorp were the top gainers, while Cipla and ONGC were the failures with most terrible hit. 48 of 50 Nifty stocks closed higher.
“Monday’s high of 17100 was the crucial level for Nifty and as that got surpassed today, the momentum turned on the positive note. Nifty has again managed to find a support around the January lows of 16830 which indicates it to be a crucial support base. On the flipside, 17500-17550 would be seen as an immediate hurdle which needs to be surpassed decisively for broader market participation. Today’s move looks quite encouraging as the rally was led from the previous swing low support and at a time when the sentiment was mostly cautious amongst market participants. In options segment, 17000 put option added decent open interest as the market rallied which would be the immediate support for this expiry, while 17500-17700 would be the levels to watch on the higher side. Traders are advised to look for stock-specific opportunities and trade with proper risk management,” said Jain
All sectoral files ended higher, with auto, realty, IT, FMCG stocks, banks, PSU banks up 2-4 per cent. BSE MidCap and SmallCap lists rose 2 per cent each.