Mumbai: Benchmark index Sensex overcame early losses to close up by nearly 364 points on Tuesday, extending gains for the second consecutive day due to late buying in banking and oil shares.
The BSE’s 30-share barometer gained 363.99 points, or 0.45 per cent, ending at 80,369.03, with 16 of its components advancing and 14 declining.
After opening lower and dropping 583.69 points to 79,421.35 in late morning trade, the index rebounded in the second half due to interest in banking, financial, and oil stocks, hitting an intraday high of 80,450.48.
Firm global trends
The NSE Nifty rose by 127.70 points, or 0.52 per cent, to 24,466.85. Traders cited firm global trends and consistent domestic institutional investor (DII) buying as key factors in the recovery.
Among Sensex constituents, State Bank of India (SBI) led with a 5 per cent gain, followed by ICICI Bank, Bajaj Finserv, NTPC, Adani Ports, Bajaj Finance, and Larsen & Toubro. Conversely, Maruti, Tata Motors, Sun Pharma, Bharti Airtel, IndusInd Bank, and Mahindra & Mahindra were among the laggards.
“The Nifty extended its rebound for the second consecutive day, boosted by banking sector gains,” commented Deepak Jasani, Head of Retail Research at HDFC Securities.
Bankex surges
The BSE’s midcap and smallcap indices climbed 0.74 per cent and 0.71 per cent, respectively, while sectoral indices like bankex surged 2.20 per cent, financial services rose by 2 per cent, and realty by 1.46 per cent.
Despite morning declines, resilient heavyweights in the banking sector drove the index upward, according to Ajit Mishra, SVP of Research at Religare Broking Ltd. On Monday, Foreign Institutional Investors (FIIs) sold Rs3,228.08 crore in equities, while DIIs purchased Rs1,400.85 crore.
Asian markets, including Seoul, Tokyo, and Hong Kong, closed higher, while Shanghai ended slightly down. European markets showed gains, while the U.S. closed positively on Monday. Global oil benchmark Brent crude also saw a 0.66 per cent rise, settling at USD71.89 per barrel.
