Indices snap four-session losing streak; Infosys rises over 2%

The Indian benchmark indices returned to the green on Tuesday, after declining for four consecutive sessions, mainly on the back of buying interest in information technology and pharma stocks. The Sensex opened weak and declined 1 per cent, but recovered in the last two hours of the trade amid gains in the European markets.
 

The Sensex ended the session at 53,424.09, a gain of 581 points or 1.1per cent. In the past four sessions, the Sensex had declined 6 per cent. The Nifty, on the other hand, gained 150 points and ended the session at 16,013, a gain of 0.95 per cent.
 

Experts said Tuesday’s gain was more of a technical rebound and investors remain anxious about surging crude oil prices and growing prospects of US-led sanctions on oil imports from Russia for its attack on Ukraine. Ultra-high commodity prices have seen overseas investors flee risky assets amid worries over inflation and slowing economic growth.
 

European stocks gained after news reports suggested that the European Union was considering joint bond sales to help counter the fallout from Russia’s attack on Ukraine.

“Even several large-cap blue-chip stocks are down 20-30 per cent and are available at reasonable valuations, making them attractive for long-term investors. However, the near-term market direction will continue to be driven by factors like the Assembly elections’ outcome, the ECB and US Fed meetings, besides the ongoing Russia-Ukraine conflict,” said Siddhartha Khemka head of retail research, Motilal Oswal Financial Services.

The market breadth was strong, with 2,178 stocks advancing and 1,159 declining. Four-fifths of Sensex stocks gained. Infosys gained 2.2 per cent and contributed the most to index gains, followed by TCS, which gained 3.3 per cent. All the sectoral indices barring four, gained on the BSE. Realty and IT stocks gained the most, and their sectoral indices jumped 3.2 per cent and 2.4 per cent, respectively.

FPIs sold shares worth Rs 8,143 crore ($1.05 billion) on Tuesday. This was the third straight day when they pulled out over Rs 7,000 crore ($900 million) from domestic stocks. Their year-to-date selling tally has now crossed the Rs 1-trillion mark.