Indian equity indices staged a smart recovery on Tuesday to close over 200 points higher, boosted by robust buying interest in metal, pharma, and auto stocks. However, the upside remained capped due to mild profit-taking in IT counters.
The BSE Sensex rebounded from the day’s lows to end 230 points higher at 71,337 levels. The NSE Nifty50 settled with gains of 92 points at 21,441.
NTPC, Mahindra & Mahindra (M&M), Wipro, Kotak Mahindra Bank, Tata Steel, and Asian Paints emerged as the top Sensex gainers. On the flipside, Bajaj Twins, Infosys, TCS, Tata Motors, and HCL Tech closed with losses.
Broader markets outperformed the benchmarks, with BSE Midcap and Smallcap indices rising 0.7% and 0.5% respectively.
Sectorally, metals led the charge with the Nifty Metal index surging 1.2% on an improved outlook for China demand. Healthcare, pharma, and PSU bank stocks also attracted healthy buying, while IT and media settled marginally lower.
Markets recovered smartly from intra-day lows led by stock-specific buying in quality names across sectors. However, trading volumes remain muted ahead of the monthly derivatives expiry, capping the overall upside.
Globally, optimism over reopening in China lifted Asian indices including Hang Seng, Nikkei, and Kospi by 1-3%. This also supported domestic metal and energy stocks. However, European indices were trading mixed as markets awaited cues from upcoming economic data.
Going ahead, the monthly F&O expiry on Thursday, the last leg of the Q3 earning season, and Union Budget 2023 will remain the major market drivers. Technically, the Nifty seems to have found support at 21,150 and is placed to hit 21,700 in the near term.
