India: Nifty crosses 16,000, Sensex jumps 500 pts

Indian stock market indices traded in the green on Tuesday, with BSE Sensex and NSE Nifty 50 up 1% each.

BSE Sensex jumped more than 500 points or 1 per cent to 53,800, while NSE Nifty 50 topped 16,000.

Reliance Industries Ltd (RIL), Tech Mahindra, ICICI Bank, State Bank of India (SBI), Power Grid Corporation of India, HDFC, HDFC Bank were among top BSE Sensex gainers. Only one stock on S&P BSE Sensex was in red.

Meanwhile, Tata Motors, Power Grid Corporation of India, ONGC, Bajaj Finserv, and Adani Ports were the top five gainers among the Nifty 50 companies, while Britannia, Hero Motocorp, Bajaj Auto, Divis Labs, and ITC the top five losers, National Stock Exchange data showed.

“Amid evidence of fresh infections in the second-largest economy, Asian markets ended mainly lower on Monday. However, late purchasing helped the Indian stock market to end higher (on Monday),” said Mohit Nigam, Head - PMS, Hem Securities.

Market volatility may be caused by the prevailing worries about the persistent selling of funds by foreign investors, Nigam said.

Foreign portfolio investors have been persistently selling equities in the Indian markets for the past 9-10 months due to various reasons, including tightening of monetary policy, rising current account deficit on account of depreciation of rupee, rising dollar and bond yields in the US.

They typically prefer advanced economies in times of sharp volatility and uncertainty in the overall financial markets.

So far in 2022, they have sold equities worth Rs2.2 trillion in India, NSDL data showed. During the same period, Sensex and Nifty declined around 10 per cent each.

On Tuesday, other major Asian stocks too rose amid speculations that the US administration could scrap some Trump-era tariffs on Chinese consumer goods, said Deepak Jasani, Head of Retail Research, HDFC securities.

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