Closing Bell: Sensex Surges 497 Points, Nifty Ends Above 16,750

IT stocks, HCL Technologies, and Wipro were the major gainers among the Sensex 30 pack, up 4 per cent and 3.6 per cent, respectively

Tata Steel, UltraTech Cement, Sun Pharma, Tech Mahindra, and Titan were up 2-3 per cent each. Image: Getty

New Delhi:  Led by gains in IT and metal stocks following a positive trend in global markets, key Indian equity benchmarks traded higher on Tuesday.

Sensex, opened with a positive gap of almost 500 points at 56,320, and went on to rally to a high of 56,901, up 1,079 points from the previous close. The BSE benchmark, however, pared gains towards the end of the day and finally settled 497 points higher at 56,319, while the broader NSE Nifty moved 157 points or 0.94 per cent up to settle at 16,771.

Mid- and small-cap shares jumped as Nifty Midcap 100 index climbed 1.28 per cent and Nifty Smallcap 100 index surged 1.25 per cent.

IT stocks such as HCL Tech and Wipro were the major gainers among the Sensex 30 pack, up 4 per cent and 3.6 per cent, respectively. Tata Steel, UltraTech Cement, Sun Pharma, Tech Mahindra, and Titan were up 2-3 per cent each. Reliance Industries added 1.5 per cent to Rs 2,310.

On the flip side, PowerGrid Corporation slipped 1.8 per cent. Axis Bank and Bajaj Finance were the other notable losers.

In the broader market, the BSE Midcap and Smallcap indices finished with gains of 1.4 per cent and 1.3 per cent, respectively.

Global shares gained as investors weighed up the extent to which the Omicron coronavirus variant would hit economies around the world, with the US dollar softening as appetite for riskier assets made a cautious return.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 3,565.36 crore on Monday, according to stock exchange data.

The negative sentiments caused by the global sell-off triggered by the explosive growth of the Omicron variant may persist in the short run. Sustained FII selling (above Rs 30,000 crore for December, so far) continues to be a major headwind for the market, said V K Vijayakumar, chief investment strategist, Geojit Financial Services.

However, it is important to note that FIIs are booking profits rather than selling indiscriminately in India. From November 1st to 15th December FIIs sold bank stocks worth Rs 19,442 cr. They have been sitting on big profits on bank stocks, which they accumulated during 2015-20. So, profit booking makes sense, he stated.

FIIs are not indiscriminately selling India and will turn buyers when they see the value. Meanwhile, DIIs are spotting value and accumulating stocks in many beaten down segments, he added.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading with gains in mid-session deals.

Stock exchanges in the US ended in the red in the overnight session.

Meanwhile, international oil benchmark Brent crude rose 0.80 per cent to $72.09 per barrel.