Investors richer by over ₹12 lakh crore as markets record sharp gains

Market


Equity investors became richer by over 12 lakh crore on Tuesday, helped by a smart rally in the broader market.

Tracking the sharp rally in equities, the market capitalisation of BSE-listed firms jumped 12,05,523.65 crore to 2,55,55,447.68 crore.

Benchmark indices Sensex and Nifty on Tuesday spurted by over 2.5 per cent to log their best single-day gains in three months, propelled by heavy buying in metal, energy and banking stocks amid a global rally in stocks.

The 30-share BSE benchmark zoomed over 2% to settle at over one-week high of 54,318.47 points with all of its constituents closing with gains. During the day, it jumped 1,425.58 points or 2.69% to 54,399.42.

“Markets witnessed a sharp rebound and gained over 2.5 per cent, thanks to favourable cues. The benchmark opened higher led by supportive Asian markets as China eased lockdown restrictions. As the day progressed, healthy buying across sectors and short-covering supported the market to maintain its momentum.

“It is a much-needed breather for the bulls after five weeks of slide,” Ajit Mishra, VP – Research at Religare Broking Ltd, said.

The broader NSE Nifty rallied 417 points or 2.63% to finish at 16,259.30 points. All the 50 stocks advanced led by steel and energy stocks.

Both Sensex and Nifty notched their best single-day gain since February 15.

“A ferocious up-move from the metal index lifted Reliance together with other sectoral indices, leaving bears gasping and covering short positions and looking out for reasons for the rally,” S Ranganathan, Head of Research at LKP securities, said.

On a day when WPI for April crossed 15%, over 2.5% rise in benchmark indices coupled with the breadth of the rally surprised many on the street despite the move coming after a relentless fall, Ranganathan added.

Among Sensex stocks, Tata Steel emerged as lead gainer, rising by 7.62 per cent.

The most valuable company Reliance zoomed 4.26 per cent, helping Sensex to close at over one-week high.

Among others, Infosys, ITC, Larsen & Toubro, Wipro, ICICI Bank, HCL Technologies, Bajaj Finance, SBI and Maruti also added to the rally.

“After a long gap, the market has witnessed a strong resilience supported by heavyweights and broader markets. The market was trading at oversold territory and was inspired by optimism in the Asian markets,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Indian markets made a superb comeback today gaining over 2.5% on back of improving global clues and asian markets trading in the green. Metal sector was the top performer,” said Rahul Sharma, Research Head, Equity 99.

In the broader market, the BSE smallcap gauge rallied 2.78 per cent and midcap index jumped 2.51%.

All BSE sectoral indices also ended higher, with metal jumping 7.62%, followed by basic materials (4.26%), energy (4.13%), oil and gas (3.52%), telecom (3.31%) and industrials (3.14%).

A total of 2,624 stocks advanced, while 714 declined and 124 remained unchanged.

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