Stock Market Update: Nifty reclaims 17,100, Sensex jumps over 1200 points; auto, banking, FMCG lead recovery

The domestic equity market made a bounce back on Tuesday after correcting by 3 per cent on Monday. After benchmarks opened half a percent higher in the morning, the Nifty50 and the Sensex rallied further to strengthen the recovery as both the indices were trading 2 % higher in the afternoon trade. The broader Nifty50 briefly surpassed 17,100 and was trading with gains of 327.45 (1.94%) to 17,170.25 at 1.45 PM. Similarly, the Sensex surged nearly 1200 points or 2.19% to trade at day's high of 57,640.05.  

Auto, banking, media and FMCG stocks were leading the recovery as the indices gained up to 2.5% in the afternoon trade on Tuesday. In the broader market, mid cap and small cap indices gained between 0.75% to 1 per cent.  

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Eicher Motors, Shree Cement, Hero MotoCorp, Nestle India, Hindustan Unilever, Bajaj Finance, Mahindra & Mahindra, L&T and Bharti Airtel were top gainers.  

Cipla, Tata Steel, Powergrid, ONGC, were the only losers on the two indices around 1.45 pm.  

"Till Nifty holds below 17000 zones, bounces can be sold and weakness can be seen towards 16600-16500, whereas hurdles can be seen at 17100 and 17300 zones," Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited had said after market witnessed sharp correction pf 3% on Monday.

Earlier, Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, has recommended for buy on dips saying the recent correction in the Indian market has brought down the stretched valuations.  

"The relentless FII selling and market correction has made the valuations of financials attractive. This provides an opportunity for long-term investors who can ignore the short-term gyrations in the market," he had said.