Sensex Today: Indian shares edged higher on Tuesday, aided by an uptick in metal stocks, after China announced it will further ease its strict COVID-19 restrictions, bolstering expectations of demand recovery in the world’s second-largest economy. After an initial bout of volatility, wherein the S&P BSE Sensex dipped to a low of 60,406 in early deals, the benchmark firmed up and rallied to a high of 60,987 – up 581 points from the day’s low. The Sensex finally ended 361 points higher at 60,927. In the process, the BSE benchmark has now gained 1,082 points in the last two trading sessions.
The NSE Nifty 50 index surged 117 points to settle at 18,132.
Among the Sensex 30 shares, Tata Steel soared over 6 per cent. Tata Motors, Asian Paints, Wipro, Larsen & Toubro, Bajaj Finance, ICICI Bank and Infosys were the other prominent gainers. On the other hand, select index heavyweights – Hindustan Unilever, ITC and HDFC twins underperformed in today’s trading session.
On the contrary, the broader outperformed yet again. The BSE Midcap jumped 0.7 per cent, while the Smallcap index soared 1.5 per cent. The overall breadth was fairly positive, with over 2,500 shares advancing as against 920 declining stocks on the BSE.
Sectorally, the BSE Metal index soared over 4.5 per cent. The Commodities, Telecom, Oil & Gas and Power indices were the other significant movers, up over a per cent each.
In the broader market, HEG soared nearly 8 per cent after the company announced incorporation of wholly-owned subsidiary TACC, which would manufacture graphite anode for Lithium-ion cells. READ MORE
Time Technoplast zoomed 19 per cent in intra-day deals, after the company said it won a repeat order worth Rs 75 crore from Adani Total Gas for supply of CNG cascades made from Type-IV composite.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Major part of the 320 point cut in Nifty on Friday has been reversed by the 207 point rally yesterday. Covid scare played an important role in the correction on Friday which saw sharp cuts on banking and hotel stocks and rally in pharma stocks. This trend has reversed with Covid fears receding now. Looks like 2022 is heading for a less volatile end. The New Year is likely to begin on an optimistic note with Q3 results and budget expectations influencing market moves. Results from the banking and capital goods segment would be good since bank credit growth and capex are the two strong themes in the economy now. Banking majors have the potential to move up further from present levels. In IT investors would be keenly watching the guidance from the management rather than the Q3 results which will be good.”
Global Cues
Stock markets gained while the US dollar softened on Tuesday after China said it would drop its quarantine requirements for inbound visitors, further easing three-year border controls aimed at curbing COVID-19.
Tokyo shares opened higher on Tuesday, trading in a narrow range as the market lacked fresh clues during winter holidays. The benchmark Nikkei 225 index rose 0.62 percent, or 164.91 points, to 26,570.78 at the open, while the broader Topix index climbed 0.60 percent, or 11.50 points, to 1,914.02.
US equity futures inched up this morning as traders head towards the final days of 2022. Dow Jones futures, the S&P 500 futures, and NASDAQ futures rose up to 0.6 per cent.
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