Equity investors became more and more wealthy 12 lakh crore on Tuesday, helped by a smart rally in the broader market.
Tracking a sharp rally in equities, the market capitalization of BSE-listed firms jumped 12,05,523.65 crore from 2,55,55,447.68 crores.
Benchmark indices Sensex and Nifty on Tuesday rose over 2.5 per cent to post their best single-day gains in three months, driven by heavy buying in metals, energy and banking stocks amid a global rally in stocks.
The 30-share BSE benchmark settled over 2% higher at 54,318.47 points at a one-week high, with all its constituents closing with gains. It jumped 1,425.58 points or 2.69% to 54,399.42 during the day.
“Markets saw a sharp rebound and surged over 2.5 per cent on favorable cues. China easing lockdown restrictions as supportive Asian markets opened benchmarks higher led by Asian markets. As the day progressed, all Healthy buying and short-covering across sectors supported the market.
Ajit Mishra, VP – Research, Religare Broking Ltd. said, “This is a much-needed respite for the bulls after five weeks of decline.”
The broader NSE Nifty closed 417 points or 2.63% higher at 16,259.30. All 50 stocks edged higher, led by steel and energy stocks.
Both Sensex and Nifty posted their best gains in a single day since February 15.
S Ranganathan, Head of Research, LKP Securities said, “A brutal bounce off the metal index lifted Reliance along with other sectoral indices, leaving the bears gasping and covering short positions and looking for reasons for the rally.”
Ranganathan said on a day when the wholesale price index for April crossed 15%, the breadth of the rally along with a rise of over 2.5% in the benchmark indices surprised many on the road.
Tata Steel emerged with gains of 7.62 per cent in the Sensex shares.
The most valuable company, Reliance, jumped 4.26 per cent, as the Sensex closed at a one-week high.
Infosys, ITC, Larsen & Toubro, Wipro, ICICI Bank, HCL Technologies, Bajaj Finance, SBI and Maruti also participated in the rally.
Vinod Nair, Head of Research, Geojit Financial Services, said, “After a long hiatus, the market has seen heavy weights and strong resilience supported by broader markets. The market was trading in oversold territory and was driven by optimism in Asian markets.”
Rahul Sharma, Head of Research, Equity99, said, “Indian markets today rebounded by over 2.5% on improving global cues and trading in green in Asian markets. Metals sector was the top performer.”
In the broader market, the BSE Smallcap gauge jumped 2.78 per cent and the Midcap index rose 2.51%.
All BSE sectoral indices also jumped 7.62% with metals, basic materials (4.26%), energy (4.13%), oil and gas (3.52%), telecommunications (3.31%) and industries (3.14%) rising higher. But ended.
A total of 2,624 stocks rose, while 714 declined and 124 remained unchanged.