Sensex reclaims 59k-mark, Nifty ends above 17,550; metals, IT stocks lead

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Domestic equity benchmarks recouped early losses and settled higher led by gains in index majors Infosys, Bajaj Finance, ITC and HDFC amid a positive trend in global equities. Sensex advanced 514.34 points or 0.88% to end at 59,005.27, while Nifty closed at 17,562.00, up 165.10 points 0.95%.

“Domestic indices staggered during the early trading session however positive trends in the global markets comforted Indian equities to rebound during the second half. Global stocks recovered from the fears sparked by troubles in the Chinese economy, ahead of the FOMC meeting that will start later in the day. All major sectors traded in the green zone while the auto sector remained under pressure due to rising input costs and the semiconductor shortage faced by the global auto industry,” said Vinod Nair, Head of Research at Geojit Financial Services.

Gainers & losers

Sectoral strand

Barring Nifty Auto (down 0.46%) all major sectoral indices ended in the green. Nifty Realty index rallied the most and ended with gains of 3.57%, followed by Nifty Metal index rose 2.55%. Nifty IT, Nifty FMCG and Nifty Pharma indices were up anywhere between 1-2%. Whereas Nifty Bank index advanced 0.24%.

The volatility index India VIX cooled off by 5.55% to 16.52 levels.

Broader markets

Mirroring gains in the benchmark indices broader market rallied. The BSE MidCap index advanced 193 points or 0.79% to 24,792. However, the BSE SmallCap index underperformed as it settled at 27,529 gaining 38 points or 0.14%.

The market breadth ended neutral as 1,619 shares advanced compared to 1 ,609 declined and 173 remained unchanged.

Economy

The Reserve Bank of India will conduct open market purchase of Government Securities under the G-Sec Acquisition Programme (G-SAP 2.0) for an aggregate amount of Rs 15,000 crore on 23 September 2021. Simultaneously, the bank will also sale government securities under Open Market Operations (OMO) for an aggregate amount of Rs 15,000 crore on the same day.

Global markets

European stocks rally across the board on Tuesday, 21 September 2021 bouncing back from heightened investor nerves over a Chinese property developer and ahead of a two-day meeting of the U.S. Federal Reserve.

The rebound for European stocks comes after markets got off to a poor start to the week, closing lower on Monday amid investor fears surrounding embattled property developer China Evergrande Group and concerns about the contagion risk for the wider Chinese and global economy.

Meanwhile, Asian stocks were trading higher on Tuesday. Japanese stocks declined as they returned to trade following a Monday holiday. Markets in mainland China and South Korea are closed on Tuesday for a holiday. Wall Street fell in a broad sell-off on Monday, as fear of contagion from the potential collapse of China’s Evergrande drove investors out of equities in a flight for safety.