Mumbai. The local stock market closed with gains for the second consecutive day on Tuesday, buoyed by gains in US markets and fresh buying by foreign funds. The Sensex recorded a gain of 362 points while the Nifty once again closed above the psychological mark of 25,000 points. Traders said that the sentiment in the stock markets remained bullish due to buying in Information Technology (IT), telecom and select banking stocks.
The BSE benchmark index Sensex, based on 30 shares, rose 361.75 points or 0.44 percent to close at 81,921.29 points. During trading, at one point it jumped 637.01 points to reach 82,196.55 points. The benchmark index Nifty of the National Stock Exchange (NSE) also rose 104.70 points or 0.42 percent to reach 25,041.10 points. Among the Sensex companies, NTPC, HCL Technologies, Bharti Airtel, Tech Mahindra, Power Grid, Axis Bank, Tata Consultancy Services and Adani Ports closed with gains.
On the contrary, shares of Bajaj Finserv, Bajaj Finance, Hindustan Unilever, Mahindra & Mahindra, Tata Motors and State Bank of India (SBI) declined. Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market showed gradual improvement as investors turned their attention towards US inflation and the Federal Reserve’s policy stance. However, in the near term, risks related to US politics and fears of recession may make the global market sentiment cautious.” Nair said that a good monsoon locally and the expectation of increased demand in the upcoming festive season will boost investor sentiment.
In the broader market, the BSE Smallcap index rose 1.53 per cent while Midcap gained 0.53 per cent.
In other Asian markets, China’s Shanghai Composite and Hong Kong’s Hang Seng rose while South Korea’s Kospi and Japan’s Nikkei fell. European markets were trading with a mixed trend in the afternoon session. US markets closed with a significant gain on Monday.
According to stock market data, foreign institutional investors (FIIs) made net purchases of shares worth Rs 1,176.55 crore on Monday. Domestic institutional investors (DIIs) also bought shares worth Rs 1,757.02 crore. Meanwhile, global oil benchmark Brent crude fell 1.39 percent to $ 70.84 per barrel.
Prashant Tapase, Senior Vice President (Research), Mehta Equities Limited, said, “Traders may make further deals due to the big surge on Wall Street in the US, strong buying by both FIIs and DIIs and softening of crude oil prices.” The BSE Sensex closed 375.61 points higher at 81,559.54 points and the NSE Nifty closed 84.25 points higher at 24,936.40 points on Monday.