Sensex, Nifty End On Buoyant Note; Realty, Metal Stocks Rally

After swinging between gains and losses till about an hour past noon, Indian shares climbed higher and ended on a buoyant note on Tuesday, as traders indulged in some hectic buying after two straight days of losses.

The early weakness was due to the sell-off in the U.S. and European markets on Monday and somewhat sluggish Asian stocks this morning, amid concerns over the likely impact of Chinese realty major Evergrande's debt woes.

Investors also appeared a bit reluctant to make significant moves early on in the session as they awaited the Federal Reserve's monetary policy announcement. The Fed's two-day monetary policy meeting kicks-off later today. The central bank is widely expected to leave monetary policy unchanged but could address the outlook for its asset purchase program.

Information technology and metal stocks were in demand. Realty stocks moved up sharply after the Karnataka government reduced stamp duty.

The The benchmark 30-share BSE Sensex, which dropped to 58,232.54 at one stage, losing nearly 260 points in the process, ended the day with a gain of 514.34 points or 0.88 percent at 59,005.27.

The National Stock Exchange's Nifty index, which drifted down to 17,326.10 around late morning, settled with a gain of 165.10 points or 0.95 percent at 17,562.00.

The BSE Metal Index climbed 2.62 percent. JSW Steel and SAIL moved up 6 percent and 5.4 percent, respectively. Tata Steel, National Aluminium, Welcorp, Jindal Steel, Vedanta, Hindalco, Coal India and Adani Enterprises closed higher by 1.4 to 3.5 percent.

The Nifty IT surged up nearly 2 percent. MindTree zoomed 6.4 percent, L&T Infotech gained 4 percent and Mphasis gained 2.8 percent. Tech Mahindra, HCL Technologies, Infosys and Tata Consultancy Services also ended notably higher.

The Realty Index spurted 3.57 percent. Brigade Enterprises soared nearly 10 percent and Prestige gained about 6 percent. Godrej Properties, Indiabulls Real Estate, Sunteck Realty and DLF gained 2.3 to 5.3 percent.

Although the market ended with strong gains, the breadth was neutral at close. On BSE, 1616 stocks moved higher, while 1613 stocks closed weak and 172 ended flat.

Market Analysis