Sensex Rises 400 Points, Nifty Trades Above 17,200 Led By IT, Energy Stocks
Indian shares edged higher on Tuesday, tracking global risk sentiment in the absence of key domestic triggers as information technology and energy firms shrugged off concerns over the Omicron COVID-19 version.
As of 1:24 pm, the NSE Nifty 50 index was up 128 points or 0.75 per cent at 17,214.85 and the benchmark S&P BSE Sensex was up 413.24 points at 57,833.48.
“Markets are trying to consolidate after being extremely volatile over the past two weeks. We are trying to find a floor for the market around the 15,900-16,350 range. Even though equity markets have corrected, valuations still remain high. On the higher side, said Vinod Nair, Head of Research, Geojit Financial Services.
The Nifty Energy index rose 0.7 per cent, while IT stocks rose 0.9 per cent, set for a fifth straight month of gains after rising 1.5 per cent so far in December.
Nair said, “IT will remain at a premium valuation. This is the most stable segment and their story about digitization will improve in the years to come. They are defensive in nature and a very safe sector in terms of volatility.” ,
Benchmark indices still closed with a fall of more than seven per cent from their highs in October, under pressure from a combination of factors, including warm valuations and a rise in omicron cases globally.
However, officials in Britain and France have held off on imposing strict restrictions on movement, betting that the high vaccination rate will prevent hospitals from being overwhelmed even as cases rise.
Asian stocks rose on Tuesday, as Wall Street cruised in the slipstream of another record-setting day amid strong retail sales data. [MKTS/GLOB]
Active pharma ingredient maker Supriya Lifescience was listed for the first time in its Mumbai market at a premium of 53.7% against its initial public offering price of Rs 274.