Closing Bell: Sensex surges over 1300 points, Nifty50 up 400 points as metal stocks take lead; Hindalco, Tata Steel emerge top gainers

The Indian markets gained for the second straight session on Tuesday to close in the green on the back of massive buying, even though global cues remained neutral. The benchmark indices – BSE Sensex surged around 1350 points and the Nifty50 settled above 16250 levels at the market close, mainly lifted by metal stocks. 

At the market close, the BSE Sensex surged 1344 points or 2.54 per cent to the 53913-mark, while Nifty50 grew 417 points or 2.63 per cent to 16259 levels. Outperforming the benchmarks, broader markets – Nifty mid-cap 100 and small-cap 100 spurted by over 3 and 2.5 per cent, respectively. 

All 50 stocks of Nifty closed in the green. Metal stocks were among the top gainers with Hindalco surging most by almost 10 per cent, followed by Tata Steel up nearly 8 per cent at the close. While Coal India, JSW Steel each surged by over 7.5 per cent, and ONGC gained almost 7 per cent at close.

Other index heavyweights such as Adani Ports, Tata Motors, Reliance, ITC, Wipro, L&T, ICICI Bank, Maruti, HCL Tech, Apollo Hospitals, Bajaj Finance, Eicher Motors, Titan each grew between 3 and 5 per cent at the market close on Tuesday.

The market was mainly lifted by heavy buying in metal stocks, as the index gained almost 7 per cent amid hopes of China’s demand revival and value buying. While rest all other sectoral indices gained between 2 and 3 per cent, expect Nifty Pharma up over 1 per cent at the market close.

In the primary market, Life Insurance Corporation of India (LIC) shares made a debut at a nearly 9% discount on the BSE and NSE on Tuesday. They got listed at Rs 867 per share on the BSE and Rs 872 per share on the NSE, against the issue price of Rs 949 per share at the upper band.

Milind Muchhala, Executive Director, Julius Baer India in his post market comment noted, “The markets will continue to remain influenced by incremental news flows related to central bank actions, especially the US Fed, and inflationary trends.”

In the short-term, there could be some technical pull-backs in the markets, considering the excess pessimism that seems to be floating around and the oversold conditions that we are into, he said.

The analyst also said that the market seems to be into a slightly long-drawn phase of consolidation with bouts of significant intermittent volatility. He added to be cautious about the markets for some time and expect the uncertainty and volatility to continue in the near term.