Key indices edge up in modest pullback rally

Mumbai: Equity indices staged a pullback on Tuesday after three days of declines as investors scooped up IT, metal and consumption stocks amid a largely positive trend overseas. A recovery in the rupee added to the momentum, traders said.

Overcoming a wobbly start, the 30-share BSE Sensex climbed 274.12 points or 0.45 per cent to settle at 61,418.96. On similar lines, the broader NSE Nifty gained 84.25 points or 0.46 per cent to 18,244.20.

"After three days of risk aversion, the domestic market experienced a relief rally in response to a bullish trend in global markets. The tight Covid lockdown in China, however, has negatively impacted the forecast for global growth. FII interest has also reduced significantly as a result of the increased likelihood of stricter Fed policies," said Vinod Nair, head (research) at Geojit Financial Services.

Ajit Mishra, V-P (technical research), Religare Broking, adds that "in the absence of any major triggers, the performance of the global indices, especially the US markets, will dictate the domestic market trend. Besides, the upcoming expiry of November month derivatives contracts would keep the participants busy. Meanwhile, we suggest continuing with a stock-specific trading approach and focusing on sectors that are showing resilience in the recent dip."

Foreign Institutional Investors (FIIs) offloaded shares worth a net Rs 1,593.83 crore on Monday, as per exchange data.

In the broader market, the BSE midcap gauge rose 0.48 per cent, while the smallcap index dipped 0.10 per cent. Among sectoral indices, metal climbed 0.82 per cent, followed by IT (0.75 per cent), teck (0.70 per cent), consumer durables (0.67 per cent) and commodities (0.63 per cent).