Sensex, Nifty hit 1-week highs amid global stock rally

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Sensex, Nifty hit 1-week highs amid global stock rally

Major stock indices Sensex and Nifty closed at more than a week high for the second consecutive day on Tuesday, led by gains in energy, IT, pharma and banking stocks amid gains in global stocks. The 30-share BSE Sensex ended a week high at 57,897.48, up 477.24 points or 0.83 per cent. Its 28 constituents closed with gains while two declined.

The Nifty on the National Stock Exchange closed 147.20 points, or 0.86 per cent, higher at 17,233.45, tracking gains in Sun Pharma, Asian Paints and Reliance Industries. Except two, all the Nifty stocks closed in the green.

“The domestic market is gaining momentum in global equity indices, which have risen sharply in recent sessions after correcting sharply on concerns related to the Omicron variant, potential interest rate hikes in major developed economies, and rising global equity markets. Inflation across the globe,” said Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities.

U.S. market resiliency – the S&P 500 recorded its 69th record high on Monday – and a spike in crude oil indicate that the Omicron variant, although rising, is unlikely to affect economic activity in any meaningful way. VK Vijayakumar, Head Investment Strategist, Geojit Financial Services, said. Asian Paints was the top gainer in the Sensex pack, up nearly 3 per cent.

Sun Pharma surged 2.59 per cent after the company along with other pharma players, received a regulatory approval for the Covid-19 drug mollupiravir.

Union Health Minister Mansukh Mandaviya on Tuesday said that the Central Drugs Authority has approved two COVID vaccines Covovax and Corbevax, and the anti-Covid pill Molnupiravir, for restricted use in emergency situations.

Among major index movers, Reliance Industries rose 1.18 per cent as crude oil prices improved. Infosys rose over 1 per cent, while HDFC Bank gained 0.74 per cent. M&M, NTPC, UltraTech Cement, Titan, L&T and Tech Mahindra were among the major gainers. On the other hand, only IndusInd Bank and PowerGrid were the laggards in the Sensex stocks.

All sectoral indices ended on a positive note with BSE Capital Goods, Basic Materials, Industrial, Auto and Consumer Durables indices rising up to 1.56 per cent.

Broad midcap and smallcap indices rose up to 1.43 per cent.

S Ranganathan, Head of Research, LKP Securities, said, “The index turned positive today and closed in the green and most sectoral indices ended higher. The advance-decline ratio was very favorable as investors picked up high-quality midcap names across sectors. demanded to be deposited.

Ajit Mishra, VP – Research, Religare Broking, said markets are taking cues from their global counterparts and are witnessing a rebound amid rising COVID cases domestically and restrictions announced by some states. While all sectors are contributing to the move, the poor performance of the banking pack still hurts sentiment.

Elsewhere in Asia, shares in Shanghai, Hong Kong, Seoul and Tokyo ended on a positive note. Stock exchanges in Europe were also trading largely with gains in mid-session deals.

Meanwhile, international oil benchmark Brent crude rose 0.61 per cent to $78.70 per barrel.

Read also: Sensex rises 296 points Nifty tops

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