NEW DELHI: Benchmark equity indices Sensex and Nifty recovered nearly half a per cent on Tuesday on easing tensions in West Asia. Crude oil prices gave up some gains, which also supported the rupee.
The 30-share Sensex gained 193 points to close at 40,869, while the 50-share Nifty index settled 60 points higher at 12,053.
In the international market, Brent crude was down 0.65 per cent at $68.46 per barrel as market participants did not see immediate disruptions to the Middle East oil supply. On the other hand, the rupee traded 13 paise higher at 71.82 in the evening trade.
Market at a glance
Volatility barometer India VIX cooled down 1.53 per cent to 14.80.
As many as 27 stocks on NSE scaled their fresh 52-week high in Tuesday’s trade. The list included stocks such as Aavas Financiers, Adani Green Energy, Alkyl Amines, Aster DM Healthcare and Balrampur Chini Mills.
On the other hand, Cox and Kings, Indian Bank, JSW Holdings, Gandhi Special Tubes and Vishal Fabrics stood among 19 scrips, which hit fresh 52-week lows.
The broader market also managed to pare losses witnessed in Monday’s session. BSE Midcap and Smallcap indices settled 0.65 per cent and 0.99 per cent up at 14,862 and 13,851, respectively.
Barring BSE Telecom (down 0.97 per cent), TECk (down 0.32 per cent) and IT (down 0.26 per cent, other sectoral indices on the exchange settled in green. BSE Realty, Energy, Metal, Consumer Discretionary and Healthcare indices gained between 0.50 per cent and 1.90 per cent.
In the Sensex pack, HDFC Bank, Reliance Industries and HDFC contributed nearly 200 points to Sensex’s gains. On the other hand, Infosys, ICICI Bank and Bharti Airtel weighed on the index.
Expert’s view
“Iran is under pressure from world leaders not to escalate the issue further. Due to ease in tension in the Middle East, the market recovered from Monday’s losses. Oil prices cooled as Iran a major crude exporter stayed away from retaliation. The first advance estimates for FY20 GDP by Ministry of Statistics is expected at 5 per cent, which is already factored by the market” — Vinod Nair, Head of Research, Geojit Financial Services.
“The bulls tries to pull Nifty higher, but could not sustain major gains. As mentioned earlier recoveries are likely to be fragile and index is likely to face resistance at higher levels. The index is likely to test the support zone of 11,800 zone on the downside. Near term, traders should have a sell on rise approach for Nifty. Uptrend has been fractured in the near term. The level of 12,100 is likely to remain as resistance zone on a closing basis” — Amit Shah, Technical Research Analyst with Indiabulls Ventures.
Global market
UK market rebounded in the absence of any feeble global cues. The FTSE 100 was up 0.1 per cent with gains led by banks and retailers.
Asian peers mostly ended in green. Chinese shares gained on expectations of more policy support for the slowing economy and as concerns over tensions in the Middle East eased. Meanwhile, investors are focused on much-awaited Phase 1 trade deal between the United States and China set to be signed on January 15 at the White House.
Shanghai Composite, Hang Seng, Jakarta Composite, KLSE Composite, Nikkei 225, Straits Times and Kospi Composite gained between 0.30 per cent and 1.60 per cent.
Source: Economic Times
