All the sectoral indices on NSE were trading in the green with Nifty FMCG, Nifty Pharma, Nifty Metal, Nifty IT and Nifty Financial Service being the biggest gainers.
Indian equities may have risen on Tuesday on the back of positive cues from Asian markets. The 30-share benchmark Sensex rose by 1028.17 or 3.62% to close at 29,4689.49. The broader Nifty50 also rallied 3.8% or 316.65 points to close at 8,597.75. Market experts, however, suggested that focus will now be on size and quality of the companies.
Foreign portfolio investors (FPIs) continued to pull out from Indian markets selling $403.5 million from Indian equities, according to provisional data on exchanges. Domestic Institutional Investors (DIIs) have bought equities worth $473.4 million. FPIs have so far pulled out nearly $15 billion from the Indian equity and debt markets making the current exodus, which is the largest ever.
Sanjeev Hota, head of research, Sharekhan by BNP Paribas, stated that markets have always witnessed such corrections. “The correction that we witnessed is because of the COVID-19 pandemic, however, this is not the first time the markets have corrected or the last. The important thing is to stay invested in good quality stocks,” he said.
Market experts stated that the rise on Tuesday could also be partly attributed to net asset management by market participants in India as the fiscal year was ending. They added that even at the current levels, the markets may not have factored the fundamental changes that will take place due to changing consumer patterns. For FY20, investors in the market have lost wealth worth Rs 41 lakh crore after the market saw a correction on the back of the COVID-19 pandemic.
Globally, bourses in Taiwan, Hong Kong and South Korea were up between 0.8% and 2.1%. China’s Shanghai Composite traded flat moving up by 0.1%. The stock markets in Europe were trading mixed at the time of press with bourses in Germany and France trading in the negative and the United Kingdom trading positive. Dow Jones mini futures was down by 135 points.
Vinod Nair, head of research, Geojit Financial Services said that the indices mirrored the global markets “Chinese economic data, industrial production numbers improved and helped the global momentum, especially in metals, pharma and FMCG. The performance of the global market will be the key driver for Indian market in the near term,” he said.
The biggest gainers on Nifty were BPCL, Britannia, GAIL, ONGC and UPL, which were up by 13.5%, 8.6%, 8.1%, 7.3% and 6.9% respectively. The biggest losers on the Nifty were IndusInd Bank, Eicher Motors, Cipla, Zee Entertainment and Bajaj Finserv, which were down by 15.1%, 2.7%, 2.1%, 1.5%, and 1.3% respectively. IndusInd Bank has been the biggest loser for FY20 declining as much as 76.7% throughout the year, it was also the top loser on Bank Nifty on Tuesday after the company management stated it saw a 10% to 15% decline in deposits. In Tuesday’s trading session heavyweights such as Reliance Industries, HDFC, HDFC Bank, ITC, Hindustan Unilever and ICICI Bank. Oil marketing companies (OMCs) witnessed a 6% to 15% rise in shares after Credit Suisse upgraded all the three OMC stocks.
Nifty Bank was up 1.9% after falling 6.06% in the previous trading session. All the sectoral indices on NSE were trading in the green with Nifty FMCG, Nifty Pharma, Nifty Metal, Nifty IT and Nifty Financial Service being the biggest gainers. Nifty Metal stocks were supported by strong global cues. Nifty Midcap and Nifty Smallcap also participated in the market rally gaining 2.2% and 3% respectively. The cash volumes of the NSE were Rs 39,637.6 crore as against the six month average of the last six months average of 3.92 lakh crore.