Equity benchmark indices Sensex and Nifty closed higher for the third straight day on Tuesday on gains in market heavyweights ITC, Reliance Industries and Infosys amid a bearish trend in global equities.
Besides, robust domestic macroeconomic data added to the positive momentum, traders said.
The BSE benchmark index climbed 152.12 points or 0.23% to settle at 65,780.26. During the day, it gained 203.56 points or 0.31% to 65,831.70.
The Nifty rose 46.10 points or 0.24% to end at 19,574.90.
“Strong domestic factors are providing crucial support for Indian equities, allowing them to maintain their strength despite attempts by weak global peers to disrupt the mood. India’s service PMI remains robust at 60.1, indicating sustained demand even in the face of inflationary pressures.
“Notably, small and mid-cap stocks have been standout performers, with both indices reaching all-time highs. Conversely, the weak Chinese service PMI has cast a shadow on hopes of an economic rebound in China, impacting global market sentiments,” said Vinod Nair, Head of Research at Geojit Financial Services.
Sun Pharma emerged as the biggest gainer from the Sensex pack, climbing 2.09%, followed by ITC, Titan, Bajaj Finance, Nestle, Infosys, L&T, JSW Steel, Reliance Industries and Kotak Mahindra Bank.
UltraTech Cement, Maruti, HDFC Bank, Wipro, State Bank of India and NTPC were among the laggards.
“Markets held on to gains for the 3rd straight day but strong follow-through buying was, however, missing albeit lack of positive Asian cues. The positive takeaway was that the benchmark Nifty stuck to gains as Nifty Mid-cap and Small-cap indices continued to scale fresh all-time highs.
“The risk mood has improved after Friday’s softer than expected US August payrolls report which suggests that September rate hike is off the table,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
In the broader market, the BSE midcap jumped 1.09%, and smallcap gained 0.61%.
Sectorally, healthcare rallied 1.29%, realty climbed 1.08%, energy (1.01%), consumer durables (0.90%), oil & gas (0.83%) and services (0.72%).
Financial Services, telecommunication and bankex were the laggards.
“Global equities mostly fell on Tuesday as higher Treasury yields weighed on growth stocks, while a slow pace of expansion in services activity in China (8-month low) stoked worries over demand in the world’s second-largest economy,” Deepak Jasani, Head of Retail Research, HDFC Securities, said.
In Asian markets, Tokyo settled in the green, while Seoul, Shanghai and Hong Kong ended in the negative territory.
European markets were trading on a mixed note in early deals. The U.S. markets were closed on Monday.
“While markets extended gains for the third straight session, the mood was more or less range-bound with a positive bias as U.S. markets were shut on Monday and investors preferred to take selective bets. One needs to be watchful about the sharp volatility in the rupee, which could impact FII flows going ahead,” Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd, said.
The rupee plunged by 35 paise to close at 83.06 (provisional) against the U.S. dollar on Tuesday, amid a strong American currency and higher crude oil prices.
According to a survey, manufacturing activities in India gained momentum in August.
Meanwhile, GST collections grew by 11% to over ₹1.59 lakh crore, and domestic passenger vehicle sales hit a record in August.
Global oil benchmark Brent crude declined 0.62% to $88.45 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,367.67 crore on Monday, according to exchange data.
The BSE benchmark had climbed 240.98 points or 0.37% to settle at 65,628.14 on Monday. The Nifty advanced 93.50 points or 0.48% to close at 19,528.80.
“We expect the broader market participation to continue to outperform and sector rotation is helping Nifty to stay elevated. On the upside we expect the Nifty to target levels of 19650. In terms of levels, 19490 – 19470 shall act as a crucial support and 19650 – 19700 shall act as an immediate hurdle,” Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said.
