Sensex, Nifty gain for second consecutive day; RIL, HDFC Bank, ICICI Bank top index contributors

Reliance Industries along with leading financial institutions like HDFC Bank HDFC, Kotak Mahindra Bank, and ICICI Bank were the top index contributors.

Sensex and Nifty were in the firm control of bulls on Tuesday, continuing their climb higher for the second day straight. S&P BSE Sensex ended higher by 477 points or 1.26% while the Nifty 50 index was just below the 11,400 mark. Volatility eased after surging during the last trading session of the previous week. Private banks and financial institutions along with index heavyweight Reliance Industries were the top contributors today. With today upward movement, the benchmark indices have now recovered all the losses recorded on Friday.

Investor wealth by Rs 1.8 lakh crore: With over 1% gain recorded by both Sensex and Nifty today, the market capitalization of all BSE listed firms increased to Rs 154 lakh crore. This translated to an addition of Rs 1.8 lakh crore from yesterday’s closing levels. It now stands where it was earlier this year in February.

Top gainers: Ultratech Cement along with Kotak Mahindra Bank and ICICI Bank were the top BSE Sensex gainers on Tuesday. On BSE Midcap, KIOCL Ltd was up 10% followed by Chola Finance, up 9%. BSE Smallcap saw a 19% jump by Sanghvi Movers. Ashok Leyland, Adani Enterprises, Grasim Industries, and DLF were some of the big gainers on the stock market today.

Top drags: Tech Mahindra, HCL Tech, and Bajaj Auto were the top Sensex drags. Among midcaps, Edelweiss and Emami were the worst performers. On the other hand the BSE smallcap index saw Suven Pharma and Thyrocare as the top drags.

RIL, Financials help: Reliance Industries along with leading financial institutions like HDFC Bank HDFC, Kotak Mahindra Bank, and ICICI Bank were the top index contributors. The index heavyweights gained during Tuesday’s trading session helping the index surge with them.

Global stock watch: Shanghai Composite, Hang Seng, and Topix ended in the green while Nikkei was down in the red. “Asian shares closed mixed as the lift from Wall Street’s tech-fueled rally was checked by investors’ fresh concerns about Sino-U.S. tensions. The Trump administration announced on Monday it would further tighten restrictions on China’s Huawei Technologies Co, aimed at cracking down on its access to commercially available chips, a move set to disrupt global supply chains,” said Deepak Jasani, Head Retail Research, HDFC Securities.

Technical talk: “The short term trend of Nifty continues to be positive. Nifty could encounter another overhead resistance around 11500-11600 levels in the next few sessions and there is a possibility of another round of minor profit booking from the highs by the week end or by next week. Immediate support is now shifted to 11350-11300,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.