Sensex, Nifty Snap Two-Day Losing Streak Led By Banking, Auto Shares
The Indian equity benchmarks rebounded strongly on Tuesday from a sharp selloff in the previous session on the back of strong buying interest in banking, financial services, auto and metal stocks. The Sensex rose as much as 744 points and Nifty 50 index moved above its important psychological level of 14,500.
Investor sentiment got a boost after the government moved to fast-track approvals for foreign COVID-19 vaccines. Government is likely to fast-track emergency approvals for shots already approved in Western countries and Japan, paving the way for possible imports of Pfizer, Johnson & Johnson, Novavax and Moderna vaccines.
The news comes as the country battles a massive second wave of the virus that has spurred fresh restrictions in some parts and threatened to derail a nascent economic recovery.
The Sensex ended 1.38 per cent or 661 points higher at 45,544 and Nifty 50 index climbed 194 points or 1.36 per cent to settle at 14,505.
"If Nifty sustains above 14,500 it can go up to 14,800 levels. The momentum indicators like RSI, MACD are showing divergence, indicating a likelihood of further consolidation around the current levels," Ashis Biswas, head of technical research at CapitalVia Global Research told.
Nine of 11 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty PSU Bank index's over 4 per cent gain. Nifty Auto, Bank, Financial Services, Private Bank and Realty indexes also rose between 3-4 per cent.
On the other hand, information technology and pharma indices ended lower. IT shares came under selling pressure after TCS profit missed analyst estimates in March quarter triggering a selloff in IT stocks.
Mid- and small-cap shares also witnessed buying interest as Nifty Midcap 100 index rose 1.75 per cent and Nifty Smallcap 100 rose 1.2 per cent.
Mahindra & Mahindra was top Nifty gainer, the stock rose 7.8 per cent to Rs 810. Bajaj Finserv, Tata Motors, Bajaj Finance, Maruti Suzuki, HDFC, JSW Steel, ONGC, ICICI Bank, Power Grid, IndusInd Bank, Axis Bank and State Bank of India also rose 4-7 per cent.
On the flipside, Dr Reddy's Labs, TCS, Tech Mahindra, Wipro, HCL Technologies, Britannia Industries, Divi's Labs and Nestle India were among the losers.
The overall market breadth was positive as 1,936 shares ended higher while 928 closed lower on the BSE.
(With inputs from Reuters)