Markets opened in the green as investors fend off fears of a recession. At 9:16 AM IST, the Sensex was up 405.99 points or 0.79 percent at 52003.83 and the Nifty was up 117.3 points or 0.76 percent at 15467.50.
Top winners and losers
Among the Sensex-30 stocks, Tata Steel, IndusInd Bank, Titan, SBI, Tech M, Reliance, Bajaj twins and HDFC were the biggest winners. Hindalco, Tata Motors, Eicher Motors and JSW Steel led wins on the Nifty.
On the other hand, HUL and Ultratech Cement were the only underperformers in the two benchmarks.
In the broader markets, the BSE MidCap and SmallCap indices also made up for some of the previous day’s losses, rising 1 percent each.
Sectorally, the precipitated metal pack, which had collapsed in the previous session, also gained some lost ground with a gain of about 2 percent on the Nifty. This was followed by solid gains in the auto, IT, pharma and PSB indices. Rest was also positive.
Suven Life Sciences’ shares rose by 5 percent. The company’s board of directors will meet on June 24 to discuss a proposal to raise funds through issuance of shares based on rights.
KEC International rose more than 2 percent after the company said it won new orders worth Rs 1,092 crore across its various businesses.
dr. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “A clear trend in the market now is weakness in the broader market. While the Nifty 50 is down 5.6 percent in the past month, the Nifty Mid and “Small cap indices fell 9.25 percent and 12.63 percent respectively over the same period. This trend is likely to continue as long as the market remains weak. The pull-back rally will be led by high-quality, fundamentally strong large caps.”
“Meanwhile, the Treasury Department’s latest Monthly Economic Review warns of tensions in public finances caused by rising food and fertilizer subsidies and the loss of revenue from cuts in gasoline and diesel taxes. Both budget and current account deficits are likely to worsen and exceed budget estimates. This macro headwind can also be a headwind for the markets, especially if crude oil remains at high levels. Investors should seek the safety of fundamentally strong large caps during this phase of market turbulence,” added Vijayakumar.
Asian stocks opened slightly higher on Tuesday morning, extending gains from the previous day, following a positive lead out of Europe as markets returned to some stability after last week’s heavy losses. The MSCI index of Asia-Pacific stocks outside Japan rose 0.81 percent.
Tokyo stocks opened higher on Tuesday as investors await a speech from Federal Reserve Chairman Jerome Powell to Congress later this week. The benchmark Nikkei 225 index rose 1.07 percent or 275.88 points to 26,047.10, while the broader Topix index rose 1.20 percent or 21.78 points to 1840.72.
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