Markets gain a day after worst 1st-day fall in 3 months; Sensex up 234 pts

Indian equity benchmarks gained on Tuesday on the back of rise in index heavyweights Reliance Industries and ICICI Bank. The gain came a day after the indices posted their worst single-day decline in three months. The Sensex ended the session at 78,199, registering a gain of 234 points, or 0.3 per cent. The Nifty, meanwhile, ended the day at 23,708, posting a gain of 92 points, or 0.4 per cent. BSE-listed firms’ total market capitalisation rose Rs 3 trillion and was trading at Rs 441 trillion.

 

Reliance Industries gained 1.9 per cent and ICICI Bank rose 1.3 per cent, the two becoming the biggest contributors to Sensex gains. The market breadth was strong, with 2,603 stocks advancing and 1,378 declining. The broader Nifty Midcap 100 and Nifty Small Cap 100 rose 0.9 per cent and 1.4 per cent, respectively.

 

Indian equity benchmarks on Monday plunged 1.6 per cent amid continued foreign portfolio investor (FPI) selling, weak business updates from Indian lenders that raised concerns about corporate results in the December quarter, and the detection of Human Metapneumovirus (HMPV) cases in India. 

 

“Amid positive global cues indicating no major concerns regarding HMPV, the domestic market partially recovered from Monday's sharp selloff. In the near term, the market is expected to remain cautious, awaiting signs of earnings recovery during the upcoming result season, while also dealing with ongoing FII selling, which is driven by the strengthening dollar, rising US bond yields, and reduced expectations of further rate cuts,” said Vinod Nair, head of research of Geojit Financial Services.

 

FPIs on Tuesday continued to be net sellers of Indian equities worth Rs 1,491.5 crore and domestic institutions were net buyers worth Rs 1,615 crore. Apart from Reliance, Larsen & Toubro, which rose 1.08 per cent, and Tata Motors, which gained 2.3 per cent, were the other big contributors to Sensex gains. Amongst individual stocks, ONGC rose 3.6 per cent after CLSA raised its target price to Rs 360, citing multiple triggers for earnings growth, attractive dividend yield, and moderate valuations.

 

Going forward, the earnings season, which starts this week, will provide further cues to the market.