The Sensex and Nifty ended higher for the third consecutive day on Tuesday, tracking gains in technology counters ahead of Q3 results of frontline IT stocks. The absence of any negative news and overnight gains in the US markets further helped investors to remain invested in selective counters, said market watchers.
Analysts also expect the overall market sentiment to remain broadly stable going forward, amid expectations of strong corporate earnings, upcoming budget, and positive macroeconomic data.
The BSE Sensex rose 221.26 points or 0.37% to close at 60,616.89, with 16 declines in the 30-share index. Similarly, the Nifty-50 index closed higher by 52.45 points or 0.29% at 18,055.75.
In the Sensex pack, HCL Tech ended being the top gainer, up 4.3%, which was followed by HDFC, Tech Mahindra, TCS, Reliance Industries, and Sun Pharma. On the flipside, Kotak Mahindra Bank, ITC, Bajaj Finance, and Tata Steel were the top Sensex losers, falling up to 3.3% in the day’s trade on Tuesday.
However, foreign portfolio investors (FPI) remained net sellers in the equity segment. FPIs offloaded shares worth ₹124.23 crore in the Indian equity market on Monday, provisional data available on the exchanges showed.
Shrikant Chouhan, head of equity research (retail), Kotak Securities, said, “Bulls continued the positive momentum for the third day in a row as overnight gains in the US market and absence of any major negative news helped investors remain invested in selective sectoral stocks. The Nifty is consistently forming higher bottom and higher top formation which suggests further uptrend.”
Sectorally, the Nifty IT and energy gained more than 1% each. Financials and realty were other top gainers in the day’s trade. In contrast, metals, pharma, and FMCG ended in the red on Tuesday.
The broader markets also ended marginally higher. The BSE mid-cap closed up 0.01% and the small-cap index closed higher by 0.15%. The overall market breadth favoured the bulls on Tuesday as nearly 1,914 shares advanced on the BSE and 1,531 declined.
Elsewhere in Asia, the markets struggled to register gains and ended in the red. Japan’s Nikkei 225 fell 0.9%, Hong Kong’s Hang Seng fell 0.03%, and China’s Shanghai Composite ended lower by 0.7%. Asian equities struggled to find direction as investors awaited Federal Reserve Chair Jerome Powell’s appearance before the Senate Banking Committee, hoping for clues to the timing of expected policy tightening, said analysts.