The Sensex and Nifty ended a two-day losing trend on Tuesday, gaining about 1% as the markets mirrored their Asian counterparts. The benchmark indexes’ leading gainers were financial and information technology equities.
Despite an increase in domestic retail prices, the BSE Sensex began the morning on a positive note and continued to strengthen gains throughout the afternoon.The 30-stock index ended the day up 600 points, or 0.99 percent, at 61,032.
Similarly, the NSE Nifty gained 159 points, or 0.89 percent, to close the day at 17,930.
UPL, ITC, Reliance, Adani Ports, Bajaj Finance, and Adani Enterprises were among the top gainers on the Nifty 50, rising as high as 4%.
Adani Group’s flagship company, Adani Enterprises, earned a profit in the third quarter after losing money the previous year. It posted a net profit of Rs 820 crore, compared to a loss of Rs 11.63 crore in the previous quarter.
The Adani Group firms have witnessed large selloffs in the last three weeks following a Hindenburg Research report accusing them of accounting fraud and stock manipulation, which the company has rejected.
Since January 24, the day the report was released, the aggregate market value of the group’s seven listed equities has dropped by more than $120 billion.
Investors are finding IT shares appealing compared to other sectors following the recent slump and the sector’s generally less interest rate-sensitive nature.
Analysts, on the other hand, stated that market uncertainty persists, and the latest source of concern is the reported reversal of the downward inflation trend.
Other Asian markets climbed on Tuesday, following Wall Street’s gains ahead of a critical US inflation data release.
MSCI’s broadest index of Asia-Pacific stocks outside of Japan rose. The Nikkei in Japan increased as well.
