Likely buying from foreign portfolio investors also helped the benchmarks sustain their gains as investors factor strong economic recovery as India continues to roll out Covid-19 vaccine.
The Nifty 50 index ended 0.9 per cent or 123.6 points higher at 14,644.70 and the S&P BSE Sensex closed at 49,792.12, up 0.8 per cent or 393.83 points.
The gains in the market were broad-based with the Nifty Smallcap 100 and Nifty Midcap 100 index climbed 0.6 per cent and 1.0 per cent, respectively.
Here are the major movers in today’s session:
Tata Motors rally continues
The Jaguar and Land Rover maker’s dream run continues with the stock soaring another 6 per cent today as investors continue to bet on sequential earnings recovery, improvement of cash flow at subsidiary JLR and potential benefits from upswing in electric vehicle demand.
Tata Communications tanks on stake sale buzz
Shares of the fell over 6 per cent after media reports said that the government is looking to sell part of its26.12 per cent stake in the company through an offer for sale in the coming months. The government also intends to sell the remaining stake to Tata Group.
Maruti Suzuki rises on price hikes
Shares of India’s largest passenger vehicle maker rose nearly 3 per cent after the company said it has raised price of models by an average of 2 per cent, which investors believe will help the car maker to sustain its margin performance in the face of rising commodity prices.
Tyre stocks gain on earnings hope
Shares of tyre makers like JK Tyre & Industries and MRF rose sharply as investors believe that the companies will be able to replicate the strong Q3 earnings performance of peer CEAT.
PSU banks shine
The Nifty PSU Bank index ended 2.1 per cent higher and was among the top three sectoral performers on the National Stock Exchange. The gains were led by optimism for further recapitalisation for some banks in the Union Budget and signs that asset quality stress from Covid-19 is likely to be minimum in Q3.
How many stocks gave buy signal?
As many as 27 stocks on the NSE gave a “buy” signal based on MACD indicators including Federal Bank, Tata Chemicals, Maruti Suzuki, Siemens and VST Industries.
What’s ahead for the market?
Upside in the coming days seems limited given that traders today sold out-of-money call options of the Nifty 50 index, suggesting likely consolidation in the market at current levels.
On technical front, the Nifty 50 index successfully closed well above the 14550-14600 resistance patch. “We should now be headed to 14800-14900. Good support has been created at 14200. Keeping that as a stop level, traders can time their long positions in the Nifty. A buy on dips strategy would be a prudent approach,” said Manish Hathiramani, proprietary index trader and technical analyst at Deen Dayal Investments.