India's benchmark equity indices gained over 1% on Tuesday, after a decline of 3% in the previous session, as global risk-off sentiments abated after the Monday rout wiped out nearly Rs 5.5 lakh crore in Nifty 50 companies.
The NSE Nifty 50 gained 0.71% to trade at 24,2226.60, and the BSE Sensex rose 0.69% to trade at 79,303 as of 11:57 a.m. Intraday, Nifty rose as much as 1.36%, and Sensex gained 1.39% during the early trade.
"The first leg of such a recovery move (in Nifty) should aim for 24,389, where a pause is likely, but a second leg of the recovery move could also be expected, which, however, needs a reclaiming of 24,540–24,570 for sustenance," said Anand James, chief market strategist of Geojit Financial Services.
"Domestic liquidity flows can facilitate a recovery in the markets. It appears that the US recession fears are a bit premature and overdone. Investors need not panic. Quality largecaps can be slowly accumulated," said VK Vijayakumar, chief investment strategist of Geojit Financial Services.
The rupee continues to depreciate against the dollar and touch new lows. The Indian unit weakened to a fresh low of 83.90 at 11:14 a.m.
Shares of Reliance Industries Ltd., Larsen and Tourbo Ltd., Tata Consultancy Services Ltd., Infosys Ltd. and Hindustan Unilever Ltd. contributed to gains in the Nifty.
While those of Bharti Airtel Ltd., ICICI Bank Ltd., SBI Life Insurance Company Ltd. and HDFC Life Insurance Company Ltd. weighed on the index.
On NSE, 11 out of 12 sectors advanced. Nifty Finance was the sole index in the red, while Nifty Realty was the top performer.
Broader markets outperformed the benchmark with the BSE Smallcap and BSE Midcap rising 1.20% and 1.34%, respectively, as of 11:44 a.m.
On BSE, all 20 sectors advanced. BSE Services was the top performer, and the BSE Financial saw the least gains.
Market breadth was skewed in the favour of buyers. Around 2,605 stocks advanced, 1,122 stocks declined, and 141 stocks remained unchanged on BSE.
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