Global cues, buying support lift domestic equities; Sensex reclaims 59K-mark

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SME Times News Bureau | 21 Sep, 2021
A surge in the global markets along with rising services' exports and buying support lifted India's key stock indices on Tuesday.

Accordingly, both the key indices -- S&P BSE Sensex and NSE Nifty50 -- rose a day after a sell-off, which was triggered due to weak Asian cues.

The Sensex reclaimed the 59,000-point level, while the Nifty crossed the 17,500-mark.

Besides, the two key indices had a gap up opening but remained lacklustre in the initial half. They surged higher in the second half to close near the day's high.

Globally, after a sell-off in the morning session, the international indices recovered as traders reassessed the risks from China's crackdown on the real-estate sector and looked ahead to this week's Federal Reserve meeting.

As per market observers, the up moves came on the back of healthy buying support for realty, metal and IT stocks. Sector wise, utilities, auto and consumer durables stocks traded lower.

The S&P BSE Sensex ended the day's trade at 59,005.27 points, higher by 514.34 points or 0.88 per cent from its previous close.

Similarly, the NSE Nifty50 rose to 17,562 points, higher by 165.10 points or 0.95 per cent from its previous close.

"Nifty started lower compared to the previous day in the morning but recovered to close with decent gains," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"A range of 17,623-17,644 could be the next resistance for the Nifty while a close below 17,353 could lead to further selling in the markets," he added.

According to Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services: "On the domestic front, with active Covid cases falling to six-month low, sentiments continue to be buoyant as the economic recovery continues.

"However, with valuations getting stretched, there would be bouts of volatility intermittently, and hence the traders should navigate cautiously."

Vinod Nair, Head of Research at Geojit Financial Services, said: "Domestic indices staggered during the early trading session. However, positive trends in the global markets comforted Indian equities to rebound during the second half.

"Global stocks recovered from the fears sparked by troubles in the Chinese economy, ahead of the FOMC meeting that will start later in the day. All major sectors traded in the green zone while the auto sector remained under pressure due to rising input costs and the semiconductor shortage faced by the global auto industry."