Mumbai, Indian (BBN) – The Sensex and Nifty surged over 1.5 percent, rebounding from a seven-month low hit in the previous session to post gains in the year so far, on value buying in blue-chip stocks.
This is the second session of gains out of ten for the indexes, which were hit on Monday by worries that the government would impose more taxes on investors, reports The Hindu Business Line.
Brokers said value-based buying at some blue-chip counters, which are heavily over-sold and covering-up of pending short positions by speculators ahead of the December futures and options expiry on Thursday supported the recovery.
The 30-share BSE index Sensex ended higher by 406.34 points or 1.57 per cent at 26,213.44 and the 50-share NSE index Nifty closed up 124.6 points or 1.58 per cent at 8,032.85.
Among BSE sectoral indices, FMCG index gained the most by 2.55 per cent, followed by metal 2.46 per cent, consumer durables 2.05 per cent and healthcare 1.3 per cent.
Top five Sensex gainers were ITC (+4.02%), Tata Steel (+3.23%), Adani Ports (+2.87%), ICICI Bank (+2.25%) and Lupin (+2.13%), while the only loser was GAIL (-0.95%).
After the selling over the last few days, there is a “bit of bounce back based on confidence-building measures by the finance minister,” said Alok Ranjan, head of research at Way2Wealth Securities.
Asian stocks were mixed on Tuesday, in thin trade and with little to guide them as most major markets were closed on Monday for Christmas holidays, while the dollar reclaimed its losses from Monday.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, with Australia and New Zealand closed for a holiday in lieu of Christmas.
Japan’s Nikkei rose 0.3 per cent, buoyed by a weaker yen.
China’s CSI 300 index was little changed, while the Shanghai Composite slipped 0.2 per cent, despite positive data.