FINAL TRADE: Nifty reclaims 21,900, Sensex up 455 pts led by IT, auto stocks

Stock market today: Domestic equity benchmarks rose amid yet another choppy session on Tuesday, February 6, aided by buying interest in IT and auto stocks though selling pressure in FMCG counters played spoilsport and limited the upside. The Nifty ended 157.7 points, or 0.7 per cent, higher at 21,929.4 while the Sensex leapt to 72,186.1, up 454.7 points, or 0.6 per cent, from its previous close.

The high-beta Nifty Bank index, whose 12 constituents include SBI, HDFC Bank and ICICI Bank, settled 0.3 per cent lower for the day at 45,690.8. BPCL, HDFC Life, HCL Tech and TCS were among the top gainers in the Nifty basket, trading with gains of around 6-4 per cent. On the other hand, Power Grid, Britannia, IndusInd Bank and ITC were among the top losers, down around 3-1 per cent.

"The market exhibited a positive breadth, registering moderate gains, with investors showing reluctance to significantly trim their positions ahead of the RBI MPC meeting. Expectations for a dovish monetary policy buoyed sentiment in the bond market," Vinod Nair, Head of Research, Geojit Financial Services said.  

"Meanwhile, Oil & Gas stocks held a modest advance as the market weighed down geopolitical risks in the Middle East and awaited improvements in the weekly US crude inventory today," he said. 

The Nifty IT index rose 2.92 per cent after strong data from the US services sector provided further evidence of strength in the world's largest economy, a key geography for country's software companies.

More domestically focused Nifty Small Cap 100 and Nifty MidCap 100 settled 0.79 per cent and 1.19 per cent stronger while buying in broad market indices contiued during the session.

GLOBAL MARKETS

World share indexes rose on Tuesday, boosted by a sharp rise in Chinese stocks as Beijing ramped up efforts to put a floor under its slumping market, while government bond yields in Europe and the US dipped slightly, after two days of large increases.

A slew of announcements from China's securities regulator, a reported meeting between President Xi Jinping and financial regulators, and Chinese state fund Central Huijin Investment saying it has expanded its scope of investment in exchange-trade funds, on Tuesday, highlighted the urgency with which Chinese authorities are trying to stem heavy losses in its stock market. The gains in China also helped European shares higher, with the broad STOXX 600 benchmark up 0.26 per cent holding near last week's two-year high.

(with agency inputs)

Catch all the highlights of the February 6 session on Dalal Street here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.