Looking beyond the Archegos Capital default in the US, the Indian stock market remained the best performing Asian market on Tuesday. The headline S&P BSE Sensex and the Nifty50 indices each settled over 2 per cent higher today supported by gains in IT, pharma, and metal stocks.
The Sensex index settled above the 50,000-mark for the first time since March 23 at 50,136 levels, up 1,128 points or 2.33 per cent. The broader Nifty50 index, on the other hand, closed below the 14,850-mark at 14,845 levels, up 338 points or 2.33 per cent.
Infosys, Power Grid, HUL, HCL Tech, TCS, Nestle, and NTPC, HDFC twins were the outperforming stocks on the 30-share BSE barometer today, up between 3 per cent and 4 per cent, while UPL, JSW Steel, Tata Steel, Shree Cement, Wipro, and Divis Labs were the top stocks on the Nifty, rallying up to 7.5 per cent.
On the downside, M&M, Axis Bank, Bharti Airtel, and Hindalco were the only stocks in the red, down up to 0.32 per cent.
The broader markets, however, underperformed and closed with around a per cent gain. The S&P BSE MidCap index ended 0.98 per cent higher while the S&P BSE SmallCap index gained 1.3 per cent.
Debuting at the bourses, shares of ace investor Rakesh Jhunjhunwala-backed Nazara Technologies listed at Rs 1,990, an 81 per cent premium over its issue price of Rs 1,101 on the National Stock Exchange (NSE). Meanwhile, on the BSE, the stock debuted at Rs 1,979, 79 per cent above its issue price. Post-listing, it moved higher to 2,026.90, up 84 per cent.
The stock, however, froze at 20 per cent lower circuit at close, and was quoting at Rs 1,577 on the BSE as analysts suggested investors partially book profit and add more at a later stage.
Furthermore, analysts believe raising funds from the primary market will not be a cake walk for the companies in FY22, as investors are likely to become choosier.
For now, 18 companies hold market regulator Sebi’s approval to raise nearly Rs 18,000 crore while another 14 await the market regulator’s approval to raise nearly Rs 23,000 crore in the upcoming financial year.
Fund mobilisation via the primary market route was the highest ever in financial year 2020-21 (FY21) with India Inc raising Rs 1.88 trillion through public equity markets as compared to Rs 91,670 crore in FY20. The previous highest amount raised in a financial year was Rs 1.75 trillion in 2017-18.
On the sectoral front, the Nifty IT and Pharma index advanced 3 per cent each on the NSE, while the Nifty FMCG and Metal indices closed with nearly 2.5 per cent gains. On the contrary, the Nifty Realty index ended 0.8 per cent down in a firm market.
Asian share markets strengthened Tuesday as investors remained focused on the global vaccination program and ahead of US President Joe Biden's $3 trillion-infra package announcement in Pittsburgh on Wednesday.
The MSCI's broadest index of Asia-Pacific shares outside Japan was 0.6 per cent higher, while mainland China’s CSI300 index rose 1 per cent. Hong Kong’s Hang Seng Index added 1.2 per cent.
Japan’s Nikkei, however, was flat, dragged down by Nomura share price weakness, while Australia sounded a weaker tone when the S&P/ASX200 closed down 0.9 per cent.
In Europe, the pan-European STOXX 600 index rose 0.5 per cent, and the German DAX rose 0.6 per cent.