Metal, pharma stocks help Sensex eke out 42-pt gain amid firm global cues

NEW DELHI: Benchmark indices managed to eke out some gains by the end of a volatile session on Tuesday thanks to buying in metal, pharma and FMCG stocks. Firm global cues also helped boost the market sentiment but rising Covid-19 cases back home remained a worry.

The market is attempting a strong pullback from Monday’s low as the reimposition of lockdowns is unlikely to really dampen the economic growth trajectory, said an analyst. There is great hope that economic restrictions, the summer season and the vaccination drive will lead to a fall in coronavirus cases.

The 30-share pack Sensex added 42.07 points or 0.09 per cent to close at 49,201.39. During the day, the index moved in a range of 650 points. Its broader peer NSE Nifty rose 45.70 points or 0.31 per cent to settle at 14,683.50.


“The pullback is also supported by a strong rally happening in global markets. The domestic market was awaiting the RBI policy with an expectation to maintain the status quo, future commentary on growth and inflation will be highly viewed with an optimistic outlook on FY22,” said Vinod Nair, Head of Research at Geojit Financial Services.

Market at a glance

• Panacea Biotec surges 20% as company signs deal to produce vaccines
• PVR plunges over 4% as rising Covid cases affect outlook
• Metal stocks continue to rise as production reaches record level
• Despite volatile moves, fear gauge India VIX eases about 2%
• Adani Ports surges 14% after company acquires residual stake in Krishnapatnam Port

Among the bluechip scrips, Adani Ports was the top gainer, rising 14.50 per cent. Tata Consumer, Asian Paints, JSW Steel, SBi Life Insurance and HDFC Life Insurance were other gainers.

Power Grid was the top loser in the Nifty pack, falling 2.03 per cent. Grasim Industries, Eicher Motors, Axis Bank, UltraTech Cement, IndusInd Bank, SBI and Tata Steel were other scrips that ended in the red.

Broader market indices ended with gains, outperforming their headline peers. Nifty Smallcap added 1.35 per cent and Nifty Midcap advanced 0.91 per cent. Nifty 500 -- the broadest index on NSE -- gained 0.48 per cent.

Dhani Services, SRF, Navin Fluorine, Graphite India, Route Mobile and Granules India were top gainers from the mid- and small-cap indices, climbing in the range of 7-10 per cent.

We expect the markets to remain volatile as investors try to gauge the impact of restrictions imposed by state government to curb the spread of the virus..

-Ajit Mishra, Religare Broking

Westlife Development, Quess Corps, CanFin Homes, Trent, Mahanagar Gas and Fortis Healthcare were major losers from the broader market space, falling in the range of 2-5 per cent.

The sectoral matrix on NSE was mixed. Nifty Pharma was the top gainer, rising 1.76 per cent, followed by Nifty Metal, which added 1.43 per cent. Nifty Bank, Nifty Media and Nifty Private Bank ended in the red.

Overall market breadth was in favour of gainers as 1,664 stocks ended in the green, while 1,217 scrips settled with cuts. As many as 159 securities hit 52-week highs, mostly from the small-cap space. Meanwhile, 44 counters hit 52-week lows, mostly from the micro-cap space. About 310 stocks hit upper circuit limits and 217 lower circuit limits.

European markets were trading higher at the last count. London-based FTSE was up 1.12 per cent while Paris and Frankfurt added 0.52 per cent and 0.92 per cent, respectively. In Asia, China, Singapore and Japan closed with gains while the rest ended the day with cuts.