IT stocks rose after three sessions of falls
The BSE Sensex closed 73 points higher at 32,996 on Tuesday, despite weakness in other Asian markets. The National Stock Exchange benchmark index Nifty rose 30 points to settle at 10,124. Gains were led by IT stocks, with Tech Mahindra finishing 3.9 per cent higher. However, upside was limited due to some selling witnessed in oil & gas stocks. Thirty one stocks on the Nifty 50 finished Tuesday's session on a positive zone. Besides Tech Mahindra, other top gainers on the index included Eicher Motors, Bharti Infratel and Tata Steel, closing 3-4 per cent higher.
Here are 10 things to know about Tuesday's trading session:
- IT stocks rose after three sessions of falls. The Nifty IT, a sub-index of IT stocks, settled 1.5 per cent higher.
- Wipro shares finished 1.7 per cent higher, Infosys rose 1.6 per cent, HCL Tech 1.2 per cent and TCS 1.2 per cent.
- "The rise in the market after 4-5 sessions of declines is a clear cut case of short-covering," said RK Gupta, managing director of Taurus Asset Management.
- Investors were watching out for the Federal Reserve's two-day policy meet, which will begin later on Tuesday.
- The market would remain under pressure for the next couple of days, Mr Gupta added.
- The Nifty Pharma, a sub-index of pharmaceutical stocks, finished 0.9 per cent higher.
- “During the day, ‘Nifty Pharma’ managed to recover from its multi-year lows, which coincides with multiple key technical indicators. Hence, we expect some decent moves in this space going forward,” said Sameet Chavan, chief analyst-technical and derivatives, Angel Broking.
- Sun Pharma closed at a gain of 2.2 per cent, while Dr Reddy's Laboratories rose 1.8 per cent.
- “From this basket, Sun Pharma remains to be our preferred bet, which we believe is poised for a decent up move in the near term,” Mr Chavan added.
- Auto stocks also rose, with the Nifty Auto settling 0.6 per cent higher for the day. Tata Motors finished the day 3.5 per cent higher.
