Sensex jumps 446 points, Nifty reclaims 18,800; AB Capital, HDFC Life, RBL Bank surge up to 6%

Domestic equity markets were back in green on Tuesday as the benchmark indices settled higher after an action-packed session and all-round buying. The merger news of HDFC Twins lifted the market sentiments, while the change in market holiday from Wednesday to Thursday created much buzz in the market.

For the day, the 30-share pack BSE Sensex gained 446.03 points, or 0.71 per cent, to settle at 63,416.03, while NSE's Nifty50 gained 126.20 points, or 0.68 per cent, to close at 18,817.40. Broader markets underperformed the headline peers but BSE midcap and smallcap indices managed to settle in green. Fear gauge India VIX plunged over 5 per cent to settle at 10.78-level.

"Short covering ahead of Wednesday's F&O expiry may have triggered a sharp rebound in key benchmark indices despite a lacklustre trend in Asian and European indices. Investors have once again bet big on India's sound economic fundamentals by latching to banking and realty shares and shrugged off negative catalysts like hawkish Fed, mounting Chinese growth concerns, Russian crisis and erratic monsoon so far," said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.

"Technically, the Nifty cleared the 18,750-resistance zone and post breakout it intensified the positive momentum. On daily charts, the index has formed a bullish candle, which supports further uptrend from the current levels. For the bulls, 18,880-18,925 would be the immediate resistance zone, whereas below 18750 the market could retest the level of 18,700-18,675," he stated.

On a sectoral front, only Nifty FMCG and oil & gas indices settled in red. All other sectors managed to post gains for the day. Nifty financial services, realty, PSU bank and private bank indices added over a per cent each, while the Nifty IT, metal, media and healthcare indices added a per cent each.

In the Nifty50 pack, HDFC Life Insurance Company topped the gainers with a 6 per cent rise, while Apollo Hospital Enterprises, JSW Steel and State Bank of India added 2 per cent each. SBI Life Insurance Company, Axis Bank, HDFC Bank and Divis Laboratories were the other top gainers.

Among the losers, Cipla, Britannia Industries and Tata Consumer Products shed more than a per cent each. Adani Ports, UPL, Adani Enterprises and Dr Reddy's Laboratories were among the key laggards on the Nifty50 index.

The domestic market rallied, primarily supported by banking and finance stocks, which received a boost from the merger updates from HDFC, said Vinod Nair, Head of Research at Geojit Financial Services. "Ahead of the release of US stock data, oil prices eased as concerns regarding Russian political instability and potential supply disruptions were alleviated."

Meanwhile, global trends were mixed as the Chinese market showed signs of recovery, driven by hopes of additional policy stimulus, whereas European markets traded with declines in response to hawkish commentary from the President of the ECB, he added.

A total of 3,639 shares were traded on BSE on Tuesday, of which 2,031 settled with gains. 1,458 stocks ended the session lower while 150 shares remained unchanged. A total of 187 shares hit their upper circuits, whereas 126 shares tested the lower circuit levels for the day.

In the broader markets, Rane (Madras) gained 17 per cent, while Coffee Day Enterprises jumped more than 11 per cent. Rane Brake Lining, Lancer Container Lines, Jupiter Wagons and Man Industries gained 10-11 per cent, each. Greenpanel Industries, Force Motors and Tips Industries added 8 per cent each.

Among the losers, RattanIndia Power dropped more than 9 per cent, and Vishwaraj Sugar Industries dropped 7 per cent. Antony Waste Handling settled more 5 per cent. RattanIndia Enterprises and Steel Exchange India settled 4 per cent down, each.

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