Bargain hunting drives Sensex higher but analysts say bulls not yet out of the woods

NEW DELHI: Bottom hunters gathered on Dalal Street on Tuesday after a sharp drop in the previous sessions, taking benchmark indices higher and helping them snap two-day losing streak.

However, selling at high levels indicates that the overall trend remains weak in the market. The biggest concern as of now is the rapidly spreading Omicron variant of coronavirus. The uncertainty around its impact has made traders nervous. Further, foreign outflows have also continued to remain a reason for worry.

The 30-share pack Sensex rose 497 points or 0.89 per cent to close at 56,319.01. The index closed nearly 600 points lower from day’s high. Its broader peer NSE Nifty advanced 156.65 points or 0.94 per cent to 16,770.85.


"Domestic indices staged a gap-up opening on bargain hunting supported by positive sentiments across global markets. Although concerns surrounding the impact of Omicron & FII selling still linger and investors are treading cautiously," said Vinod Nair, Head Of Research at Geojit Financial Services.

Market at a glance:

• India VIX, barometer of future volatility, eases 8%
• CMS Info Systems IPO subscribed 34% so far on Day 1
• CE Info Systems ends first day with gains of 33%
• Wipro climbs 4% after acquiring cybersecurity firm Edgile
• Tech Mahindra up 2% on collaboration with Telefonica Germany

Among the bluechip names, HCL Tech was the top gainer, rising 4.32 per cent. Wipro, UPL, Tata Steel, Adani Ports, Hindalco Industries, Coal India, JSW Steel and Tech Mahindra were other gainers.

Power Grid was the top loser in the Nifty pack, falling 1.74 per cent. Axis Bank, Bajaj Finance, Tata Consumer, Cipla, SBI, Hero MotoCorp and Kotak Mahindra Bank were others that ended in the red.

The updates on the new variant are keeping the choppiness high globally and we expect this trend to continue in the near future. In case of a further rebound, Nifty would face a hurdle around the 17,000-17,150 zone. Participants should limit leveraged positions until we see some stability.

-Ajit Mishra, VP - Research, Religare Broking

Broader market indices also ended higher, outperforming their headline peers. Nifty Smallcap gained 1.25 per cent and Nifty Midcap added 1.28 per cent. Nifty 500, the broadest index on NSE, ended up 1.12 per cent.

Alok Industries, Amber Enterprises, KPIT Tech, Oil India, National Aluminium and Godrej Industries were top gainers from the mid and smallcap indices, climbing in the range of 5-9 per cent.

Adani Total Gas, Shriram Transport Finance, Endurance Technologies, Bajaj Electricals, Aegis Chemicals and Indigo Paints were major losers from the broader market space, falling in the range of 2-4 per cent.

All sectoral indices on NSE ended in the green. Nifty Metal was the top gainer, up 2.94 per cent. Nifty Media followed with 2.54 per cent gain. Nifty Realty and Nifty IT were other top gainers adding over 1 per cent.

Market breadth was in favour of gainers as 2,281 stocks ended in the green, while 1,036 names settled with cuts. As many as 199 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 34 names hit 52-week lows, mostly from the microcap space. About 410 stocks hit upper circuit limits and 255 lower circuit limits.

European markets were trading higher. London-based FTSE was up 0.86 per cent while Paris and Frankfurt advanced 0.39 per cent and 0.60 per cent, respectively. In Asia, all markets closed in the green.