New Delhi: A day ahead of the Reserve Bank of India’s (RBI) monetary policy announcement, Sensex and Nifty rebounded sharply on Tuesday, with the BSE closing 880 points higher at 57,634 and the Nifty 50 index up 264 points at 17,177.
The Sensex, which fell 950 points in Monday’s trade, opened with a positive margin of 378 points, and rose to a high of 57,906 as the day climbed. The Sensex crossed some gains from close, yet closed at 57,634 with a gain of a healthy 887 points.
On the other hand, NSE Nifty touched a high of 17,252 and closed at 17,177 with a gain of 265 points.
Economists and market participants said investor sentiment was boosted on Tuesday by hopes that the RBI will put a hold on raising its prime lending and lending rates on Wednesday, as it takes a cautious tone amid the spread of the Omicron coronavirus outbreak. Fifty economists polled by Reuters in a December 1-3 poll expect the RBI to keep its benchmark repo rate at 4.00 per cent.
Many economists believe that it was better to take a wait-and-watch approach, given inflationary pressures, given the new Omicron version’s uncertainties on the economy.
Nifty Metal, PSU Bank, Private Bank, Realty, IT, Media, Financial Services and Auto indices also rose between 1.6-3 per cent.
Mid- and small-cap stocks also witnessed interest as the Nifty Midcap 100 index rose 1.4 per cent and the Nifty Smallcap 100 index rose 1.1 per cent.
Hindalco was the top Nifty gainer, with the stock rising 5.15 per cent to Rs 443. Tata Steel, Axis Bank, ICICI Bank, Tata Motors, Adani Ports, JSW Steel, Kotak Mahindra Bank, Titan, State Bank of India, Bajaj Finance and Maruti Suzuki also rose between 2 per cent and 4 per cent. BSE companies were able to recapture Monday’s market cap losses. The market cap rose by over Rs 3 lakh crore on Tuesday.
Globally, Asian stocks also staged a correction on waning concerns about the impact of the Omicron version, while Chinese markets were supported by the central bank’s easing of monetary policy.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 1 percent and was on course for its biggest jump in two months. Overnight the Wall Street index climbed more than 1 per cent.
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