Sensex, Nifty close higher for sixth straight session; IT shares lead gains

Indian market closed higher for the sixth straight session in highly volatile trade led by gains in IT stocks. Sensex closed 214 points higher at 58,350 and Nifty ended at 17,388, up 42 points. Of 30 Sensex stocks, 17 ended in the green.

Tech Mahindra, TCS, Infosys, Titan, Asian Paints, and ICICI Bank were the top Sensex gainers, rising up to 1.97 per cent. Maruti, Sun Pharma and Kotak Bank were the top Sensex losers, falling up to 2.29 per cent.

Mid-cap and small-cap indices fell 147 points and 78 points, respectively.

Vinod Nair, Head of Research at Geojit Financial Services said, "Amid the geopolitical storm affecting the global markets, domestic markets moved in-line with its global peers. The global market is also concerned about recessionary risk. On the domestic front, the major trigger this week will be the RBI’s policy meeting outcome, where the market is largely expecting a 25-50 bps rate hike."

IT shares were the top sectoral gainers with their BSE index zooming 375 points to 29,801.

Market breadth was negative with 1,372 stocks ending higher against 1,975 stocks falling on BSE. 137 shares were unchanged.

Share Market update: Sensex rises 214 pts, Nifty above 17,350; TechM, Infosys top gainers

Foreign institutional investors remained net buyers in the capital markets as they bought shares worth Rs 825.18 crore on Tuesday, as per exchange data.

S Hariharan, Head- Sales Trading, Emkay Global Financial said, “Market has rebounded strongly with a turn in the trajectory of foreign investor flows – the last 4 sessions have seen FPI inflows of nearly $1 bn. A perceived pivot in the Fed’s tightening cycle and cooling off of crude oil prices have made the macro environment more favourable for India, which has outperformed EM and Asian peers by 6% in the last week. Banks and autos have attracted strongest flows while IT has been an under-performer. Going forward, the gap in valuations between Nifty and MSCI Emerging Markets index, as well as the gap between the earnings yield of Nifty vs 10 year G-Sec yield, would be adverse factors and we can expect market returns to be more muted. A pull-back towards the technical support at 200-day moving average at 17,000 is possible."

The market closed marginally higher in a volatile session on Tuesday amid gains in auto, banking and consumer durables stocks. Continuing its gains for the fifth straight session, Sensex closed 20.86 points higher at 58,136. Nifty ended at 17,345.45, up 5.40 points.

Meanwhile, rupee fell 63 paise to close at 79.16 against the US dollar.

Global markets

The Shanghai Composite Index gained 0.4% to 3,198.38 and the Nikkei 225 in Tokyo rose 0.5% to 27,740.97. The Hang Seng in Hong Kong added 0.2% to 19,726.73.

Overnight,the Nasdaq Composite slipped 0.2% to 12,348.76 and S&P 500 index lost 0.7%. The Dow Jones Industrial Average fell 1.2% to 32,396.17.