Sensex, Nifty extend gains for second straight session; Bajaj Finserv climbs 8%

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Benchmark equity indices BSE Sensex and NSE Nifty extended their gains for the second straight session Tuesday following firm global cues. The 30-share index Sensex settled 403 points, or 0.73%, higher at 55,958. Likewise, the 50-share Nifty index closed 128.15 points, or 0.78%, higher at 16,624.

As many as 20 stocks in the Sensex pack ended in the green with Bajaj Finserv rallying the most 7.92%. It was followed by Tata Steel (3.39%), Tech Mahindra (up 3.35%), Bajaj Finance (up 3.33%) and HDFC Bank (up 2.26%). On the other hand, Nestle India, Infosys, HDFC and HCL Technologies each declined over 0.90%.

Shares of Bajaj Finserv hogged the limelight after the company informed bourses that it has received approval from the market regulator Securities and Exchange Board of India (Sebi) for sponsoring a mutual fund.

Sectoral

Among the sectoral indices on BSE, the Metal index gained the most 2.76%. It was followed by Oil & Gas (up 1.99%), Industrials (up 1.75%), Capital Goods (up 1.73%) and Realty (up 1.70%). However, FMCG, TECk and IT sectors declined over 0.30%.

Analysts view

Commenting on the Vinod Nair, head of research, Geojit Financial Services said, “Strong rebound in broader markets along with favourable global cues bolstered optimism in Dalal Street, led by metal, banking and realty stocks. Metal stocks led the rally as value buying was witnessed in the sector after a deep sell-off during the past four trading sessions due to weak iron ore futures across the globe. The USFDA granted full approval to the Covid-19 vaccine by Pfizer and BioNTech which pumped in hopes of faster inoculations.”

S Ranganathan, head of Research, LKP Securities said, “While the Bajaj Twins helped power the Sensex back to 56,000 in afternoon trade, what was more encouraging was to see savvy investors begin to accumulate stocks sold at higher levels in the broader market which speaks about the recovery in the earnings cycle during Q1 despite the adverse impact of the second wave. Buoyancy in tax collections brought back traders into metal names even as the Nifty Bank lent good support.”

Global cues

Asian markets ended mostly higher on Tuesday, tracking a Wall Street rally overnight after the United States Food and Drug Administration granted full approval for the Pfizer-BioNTech corona-virus vaccine, while global investors are awaiting the US Federal Reserve’s annual Jackson Hole conference later in the week for hints at when it may taper its monetary stimulus. Chinese shares gained after reports that the US Securities and Exchange Commission has begun issuing new disclosure requirements to Chinese companies that want to list in New York, part of an effort to boost investor awareness of the risks involved. Further, Japanese shares ended higher with hopes for a faster economic recovery globally.