BSE Sensex and Nifty50 posted their biggest intra-day rally since Feb. 15 on Tuesday, as investors turned to broad buys. Major benchmark indices extended late trading gains, led by strong gains in index heavyweights ITC and Relinace Industries on Tuesday. At close, the Sensex was up 1,344.63 points, or 2.54 percent, to 54,318.47, and the Nifty was up 417 points, or 2.63 percent, to 16,259.30.
However, sector gains were led by metal stocks, with Hindalco (+10 percent), Tata Steel and Coal India (7.6 percent each) and JSW Steel (6 percent) stealing the show. The Nifty Metal index thus closed nearly 7 percent higher as China — the largest consumer of industrial products — eased Covid-19-related restrictions.
All other indices closed more than 2 percent higher. In the broader market, the BSE MidCap and Smallcap indices rose simultaneously, rising 2.5 percent and 2.8 percent, respectively.
Shares of Life Insurance Corporation of India (LIC) listed at Rs 867.20 on the BSE, a discount of 8.6 percent compared to the issue price of Rs 949 per share offered to qualified institutions and non-institutional buyers. On the National Stock Exchange (NSE), the stock opened at Rs 872, which is 8 percent lower than the issue price. The stock nearly stood at Rs 873 on the BSE.
S Ranganathan, Head of Research at LKP Securities, said: “A savage rise in the Metal Index propelled Reliance along with other sector indices in Afternoon Trade today, leaving bears gasping and hedging short positions and looking for reasons for the rally. a day when the WPI crossed 15 percent for April, the 2.7 percent rise in benchmark indices coupled with the breadth of the rally surprised many in the streets, despite the move that followed a brutal decline.
Shares ended a shaky trading day Monday, largely lower on Wall Street, extending the losing streak for the markets. The S&P 500 fell 15.88 points, or 0.4 percent, to 4,008.01. The benchmark index is coming out of a six-week losing streak. The Dow Jones Industrial Average gained, rising 26.76 points, or 0.1 percent, to 32,223.42. The tech-heavy Nasdaq had a sharp decline. It fell 142.21 points, or 1.2 percent, to 11,662.79.
Shares of Tokyo rose in morning trading Tuesday, despite Wall Street shares ending mostly lower on weak Chinese economic data. The benchmark Nikkei 225 index opened negative, but quickly climbed 0.20 percent, or 51.97 points, to 26,599.02, while the broader Topix index added 0.26 percent, or 4.90 points, to 1,868.16. The dollar raised 129.16 yen against 129.08 yen in New York on Monday.
Hong Kong stocks opened higher on Tuesday, despite Wall Street stocks ending largely lower on weak Chinese economic data. The Hang Seng index rose 1.29 percent, or 256.60 points, to 20,206.81. The Shanghai Composite Index opened 0.09 percent, or 2.69 points, at 3,071.06, while the mainland’s second-largest exchange, the Shenzhen Composite Index, fell 0.41 percent, or 7.88 points, to 1,918.13.
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