India's key indices -- BSE Sensex and NSE Nifty50 -- rose on Tuesday due to value buying after a sharp plunge during the previous session. News of decreasing tension between Russia and Ukraine has given momentum to the stocks.
Accordingly, on Tuesday attractive stock valuations brought a healthy influx of domestic institutional as well as retail funds into the market. In the initial trade, both the indices had a gap up opening.
Amongst sectors, Realty and Metals lost the most, whereas Capital Goods, Consumer Durables, Banks, Auto, Telecom, IT And FMCG gained.
At 2.15 p.m., Sensex traded at 57,976.34 points, up 2.78 per cent or 1,570.50 points. Similarly, Nifty traded 17,301 points, up 2.72 per cent or 458.20 points.
"Nifty is the best performer in the Asian region today," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"Nifty has risen to enter the downgap area between 17,303-17,099. In case it succeeds in filling the downgap completely, it will be a bullish signal for the short term."
According to Gaurav Garg, Head of Research, CapitalVia Global Research: "On the back of purchasing in frontline counters, Indian equities continued to their gains in the afternoon session, staying near the day's high point."
"Though, amid fears about rising oil prices and FII selling, the underlying attitude remained cautious."
Morning trade
At 10.41 a.m. on Tuesday, Sensex traded at 56,544.70 points, up 0.3 per cent or 139 points, whereas Nifty traded 16,888.6 points, up 0.3 per cent or 46 points.
Among the stocks, Hero Motocorp, Eicher Motors, Shree Cement, Nestle India, and Hindustan Unilever were the top five gainers.
Cipla, Tata Steel, Indusind Bank, JSW Steel, and Grasim Industries, on the other hand, were the top losers in the morning session.
"We do not know how the Ukraine issue develops. If there is a diplomatic solution, the market will stage a smart rebound. If Russia moves into Ukraine, the Western powers led by the US will impose 'swift and aggressive' sanctions on Russia which can hugely impact the Russian economy. The consequent higher crude and gas prices will have adverse implications for the Indian economy," V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"The relentless FII selling and market correction has made the valuations of financials attractive. This provides an opportunity to long-term investors who can ignore the short-term gyrations in the market."
