Sensex Gains 578 pts at Close, Nifty Above 17,800; Pharma Stocks Surge up to 5%

Sensex Today: Benchmark indices rose in-line with Asian equities on Tuesday amid a broad-based rally. The frontline S&P BSE Sensex surged 578.5 points, or 0.98 per cent, today to end at 59,720. The index hit an intra-day high of 60,106.

The NSE Nifty50, meanwhile, gained 194 points, or 1.1 per cent, to settle at 17,816. The index’s day high was 17,919. In the broader markets, the Nifty MidCap and SmallCap indices added up to 1.4 per cent.

The broad-based rally was led by the Nifty Pharma index, which rose nearly 3 per cent today. Besides, the Nifty Auto and Private Bank indices advanced 1.7 per cent each. The Nifty PSU Bank index eked out the least gains as it edged 0.5 per cent higher.

Among individual stocks, shares of Mcleod Russel soared over 9 per cent higher as Carbon Resources intends to takeover the company.

Besides, shares of Ircon International surged over 3 per cent after the company bagged Rs 256 crore work order from Mahanadi Coalfields.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Since global markets are focused on Fedspeak on the 21st, major breaks from the present levels are unlikely for 2 days. A big correction after the Fed decision is possible only if the rate hike is by 100bp. The Indian market continues to show resilience despite global challenges. Major indices like Nifty Bank, autos, FMCG, and cement are at record levels with only Nifty IT dragging the benchmark indexes. The real winners in this volatile market are investors who remained invested without much trading. This strategy may be continued in the near term. There is value emerging in IT for long-term investors.”

Global Cues

Asian shares edged up in early trade on Tuesday following a rebound in the final hour of New York trading as investors turned their attention to an expected hefty Federal Reserve interest rate hike this week to tackle inflation.

Tokyo stocks opened higher on Tuesday, extending rallies on Wall Street, with all eyes on the US Federal Reserve’s expected rate hike later this week. The benchmark Nikkei 225 index was up 0.81 percent, or 222.85 points, at 27,790.50 in early trade, while the broader Topix index advanced 0.63 percent, or 12.28 points, to 1,950.84.

Wall Street’s main indexes closed higher on Monday after seesawing during the session as investors wait to see how aggressively the Federal Reserve will hike interest rate hikes at this week’s policy meeting.

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