Sensex rises 887 points amid global rally as Omicron fears ease
Market benchmarks rebounded strongly on Tuesday after two sessions of sell-off, with a correction in global equities as concerns eased on the Omicron variant. According to experts, the world markets heaved a sigh of relief after preliminary studies showed that even though the Omicron strain of COVID-19 is spreading faster, it is substantially milder than the delta variant.
Bargaining in metal and banking stocks coupled with a marginal improvement in the rupee further propelled the domestic indices.
The 30-share BSE Sensex closed at 57,633.65, up 886.51 points or 1.56 per cent. Similarly, the broader NSE Nifty jumped 264.45 points or 1.56 per cent to 17,176.70.
Tata Steel was the top gainer in the Sensex pack, rising 3.63 per cent, followed by Axis Bank, ICICI Bank, Kotak Bank, SBI, Titan and Bajaj Finance.
Asian Paints was the lone laggard, falling 0.22 per cent. “Domestic stock markets staged a recovery … supported by broad-based buying while healthcare stocks declined. Global markets traded with optimism on reports that Omicron tensions may not be as dire as expected. Its In addition, additional liquidity was freed up by the Chinese central bank through policy easing to boost the Chinese markets.
Vinod Nair, Head of Research, Geojit Financial said, “In Indian markets, banking and financial stocks are up as MPC is about to announce its policy decision tomorrow, where RBI is likely to keep its policies unchanged in view of short-term uncertainties.” Services.
Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities, said, “Indian markets showed a sharp jump in global indices on the back of short-covering by market participants. The rally was supported by a sharp jump in banking and metal stocks, which led to sharp gains in global indices. Had severely affected recent seasons.”
All sectoral indices closed with gains. BSE Metal, Realty, Bankex, Finance, Basic Materials, Consumer Durables, Oil & Gas, Utilities and Auto indices rose up to 3.20 per cent. BSE Midcap and Smallcap indices rose up to 1.29 per cent.
Elsewhere in Asia, shares ended higher in Shanghai, Hong Kong, Seoul and Tokyo. Stock exchanges in Europe were also trading on a positive note in mid-session deals.
Meanwhile, international oil benchmark Brent crude rose 2.26 per cent to $74.73 per barrel. The rupee erased most of its early gains but closed marginally higher at 75.41 (provisional) against the US dollar.
However, foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 3,361.28 crore, according to exchange data.
Read also: Sensex tanks 764 points as Omicron enters India, Nifty drops below 17,200
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