Opening Bell: Sensex Surges Over 700 Points, Nifty Tests 16,800
HCL Tech was the top gainer in the Sensex pack, rising around 3 per cent, while Axis Bank was the sole loser during early trade
New Delhi: Key equity benchmark Sensex jumped over 715 points in early trade on Tuesday, tracking gains in index majors ICICI Bank, Infosys, and Reliance Industries amid a positive trend in other Asian markets, although surging cases of the Omicron coronavirus variant persist as a worry for investors
The 30-share index jumped 715.17 points (1.28 per cent) to 56,547 in the opening trade. Similarly, the Nifty advanced 203.60 points (1.23 per cent) to 16,817.
HCL Tech was the top gainer in the Sensex pack, rising around 3 per cent, followed by Tech Mahindra, Tata Steel, Wipro, NTPC, and Titan.
On the other hand, Axis Bank was the sole loser.
In the previous session, the 30-share equity benchmark crashed 1,189.73 points or 2.90 per cent to end at 55,822.01, and Nifty tanked 371 points or 2.18 per cent to 16,614.20.
Mid- and small-cap shares were trading in green as Nifty Midcap 100 index was up 0.81 per cent and Nifty Smallcap 100 index rose 1.15 per cent.
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 VK Vijayakumar, Chief Investment Strategist at 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.