Renewed buying in fin, auto stocks triggers relief rally

Mumbai: Benchmark indices Sensex and Nifty rallied nearly one per cent on Tuesday following gains in financials, auto and IT shares after recent sharp losses and positive global trends. The 30-share Sensex spurted by 566.97 points or 0.87 per cent to close at 66,079.36 as 26 of its constituents ended in the green and four declined. The index opened sharply higher by 400 points and surged further to touch the day’s high of 66,180.17. The broader Nifty of the National Stock Exchange jumped 177.50 points or 0.91 per cent to settle at 19,689.85, driven by gains in Coal India, Adani Ports and Bharti Airtel.

“The Indian market completely recovered Monday’s losses, which were mainly due to the Hamas-Israel conflict. Moderation in crude prices and positive global cues on account of dovish remarks from Fed officials, which restrained US bond yields, aided the rebound. The domestic market’s primary focus is currently on the approaching result season, with optimistic expectations on earnings,” said Vinod Nair, head (research) at Geojit Financial Services.

Ajit Mishra, SV-P (technical research), Religare Broking Ltd, stated that “the majority of sectors participated in the move wherein realty, metal and financials were among the top gainers. Rebound in the broader indices further added to the positivity.”