Sensex rises after 5 days, Nifty50 reclaims 10,100; IT, pharma stocks rally
Short covering in IT and pharma stocks on weak rupee led to the indices close on a positive note.
The 30-share Sensex closed 74 points, or 0.22 per cent, higher at 32,997, with 18 stocks gaining. The NSE Nifty50 settled 30 points, or 0.30 per cent, up at 10,124, with 33 stocks in the green.
“Market is struggling to rebound from the support levels due to redemption and expectation of 25 bps US Fed rate hike. India is underperforming compared to rest of the world, owing to high valuation and risk for downgrade in earnings due to higher interest rate. Short covering in IT and pharma stocks on account of weakening rupee led to the indices close on a positive note,” said Vinod Nair, Head of Research, Geojit Financial Services.
Broader BSE Midcap and Smallcap indices, however, displayed contrasting figures. The BSE Midcap index closed 0.21 per cent up, while the Smallcap index settled 0.21 per cent down on Tuesday.
The pack of gainers from Sensex included Tata Steel, Sun Pharma, Dr Reddy's Labs and Wipro, rising to 3 per cent. On the other hand, ONGC, ICICI Bank, YES Bank and Cipla declined up to 1 per cent to figure among the top losers.
Shares of Cipla took a beating after Reuters reported that the USFDA found deficiencies in its batch production and control records after inspecting Goa unit.
Aviation stock InterGlobe Aviation climbed over 2 per cent on Tuesday after DGCA data showed the aviation industry recorded more than 24 per cent jump in passenger traffic in February on a year-on-year basis.
Meanwhile, metal stocks, which fell earlier, tracking losses in Chinese iron ore, recovered in the afternoon session. Metal and mining majors Jindal Steel, SAIL, Tata Steel and Vedanta closed the day in the green.
PSU banks also saw decent traction on Tuesday. However, public-lender Canara Bank declined after the CBI charged its former CMD and others with cheating and forgery in a loan default case.
Sugar stocks, including Balrampur Chini Mills, Dhampur Sugar Mills and Dwarikesh Sugar Industries rose after Reuters reported, quoting government sources, that the government had scrapped a 20 per cent sugar export tax to facilitate overseas sales in the wake of better-than-expected production.
Asian peers remained mixed on Tuesday. While Shanghai SE Composite Index and Hang Seng closed the day in the green, Nikkei 225 declined 0.47 per cent.