The equity market has been consolidating amid fears of economic recovery losing traction. Analysts expect the indices to trade in a range in view of uncertainties on the Covid-19 front.
The 30-share pack Sensex gained 568.38 points or 1.17 per cent to close at 49,008.50. Its broader peer NSE Nifty rose 182.40 points or 1.27 per cent to settle at 14,507.30.
“Positive US job data and climb in fourth-quarter US GDP to 4.3 per cent helped to reduce the gravity of the contraction. On the domestic front, high-frequency data suggests good economic activity in Q4FY21 and results will be announced from April. The second wave of Covid and high valuation will maintain volatility in the near term,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance
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Among the blue chip stocks, Tata Steel was the top gainer for another day, rising 5.89 per cent. Bajaj Finserv, Titan, Tata Motors, Asian Paints, Hindalco, GAIL, HUL and Bharti Airtel were other gainers.
Power Grid was the top loser in the Nifty pack, falling 1.39 per cent. UPL, Eicher Motors, ITC, IndusInd Bank, Hero MotoCorp and Indian Oil were other stocks that ended in the red.
Broader market indices ended with gains, outperforming their headline peers. Nifty Smallcap added 1.16 per cent and Nifty Midcap rose 1.55 per cent. Nifty 500 — the broadest index on NSE — advanced 1.30 per cent.
“We feel this bounce is just a pause and traders should maintain extra caution until we see some stability in the move. Investors can now start accumulating quality stocks.”
Aditya Birla Fashion Retail, SAIL, M&M Financial Services, Delta Corp, Welspun India and Blue Star were top gainers from the mid- and small-cap indices, climbing in the range of 5-9 per cent.
DCM Shriram, Omaxe, TV18 Broadcast, Future Retail, Edelweiss Financial Services and Natco Pharma were major losers from the broader market space, falling in the range of 2-9 per cent.
All sectoral indices on NSE closed with gains. Nifty Metal was the top gainer, up 3.68 per cent, followed by Nifty FMCG and Nifty Realty, which rose nearly 2 per cent each. Nifty auto and Nifty Financial Service were other gainers.
Market breadth was in favour of gainers as 1,658 stocks ended in the green, while 1,296 counters settled with cuts. As many as 124 securities hit 52-week highs, mostly from the small-cap space. Meanwhile, 64 scrips hit 52-week lows, mostly from the micro-cap space. About 210 stocks hit upper circuit limits and 326 lower circuit limits.
European markets were trading higher at the last count. London-based FTSE was up 0.60 per cent while Paris and Frankfurt advanced 0.27 per cent and 0.64 per cent, respectively. In Asia, all markets ended in green, led by China, which rose 1.63 per cent.