Sensex rises over 150 points in early trade
Equity benchmark Sensex advanced over 150 points in early trade on Tuesday, tracking gains in index majors Reliance Industries, HDFC Bank, and TCS despite a negative trend in Asian markets. The 30-share BSE index was trading 155.63 points or 0.32 percent higher at 48,542.14. Similarly, the broader NSE Nifty advanced 49.80 points or 0.34 percent to 14,534.80.
Who were the top gainers or losers?
Reliance Industries was the top gainer in the Sensex pack, rising around 2 percent, followed by PowerGrid, Bajaj Finance, TCS, Bharti Airtel, and Dr. Reddy's. On the other hand, Axis Bank, Kotak Bank, HDFC, Tech Mahindra, Nestle India, and HCL Tech were among the laggards.
Sensex had ended 1.06 percent higher in the previous session
In the previous session, the 30-share BSE index Sensex ended 508.06 points or 1.06 percent higher at 48,386.51, and the broader NSE Nifty jumped 143.65 points or one percent to 14,485. Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs. 1,111.89 crore on Monday, according to provisional exchange data.
Strong March quarter performance led ICICI Bank to recover sharply
Domestic equities rebounded mainly led by a sharp recovery in financials, said Binod Modi Head-Strategy at Reliance Securities. Barring Pharma, most of the key sectoral indices traded in the green in the morning session. Strong March quarter performance led ICICI Bank to recover sharply, while HCL Tech witnessed a sell-off due to subdued 4Q performance, he added.
A reduction in new cases in Maharashtra brought relief
"A persistent rise in COVID-19 cases and enhanced economic restrictions have dented investors' sentiments over the last couple of weeks. However, a sharp reduction in fresh caseload in Maharashtra on Monday offered some comfort and a further reversal in caseload should augur well," Modi noted.
Brent crude was trading at $65.39 per barrel
Active COVID-19 cases in India stood at 28,82,204, up from 28,13,658 cases registered on Monday. Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading on a negative note in mid-session deals. Bourses on Wall Street ended with gains in overnight sessions. Meanwhile, international oil benchmark Brent crude was trading 0.55 percent higher at $65.39 per barrel.
FOMC meeting today to be closely monitored by the markets
"With Nasdaq and S&P at record highs, the global support to markets is strong. The Federal Open Market Committee meeting will be keenly watched by markets for clues on probable trends in rates and yields," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.