The Indian stock market closed in positive territory for the second consecutive day of the week after trading flat earlier in the day. On Monday, the market broke a five-day losing streak experienced in the previous week amid weak earnings and continued selling by foreign institutional investors (FIIs).
On Tuesday, the Nifty closed at 24,466.85, up by 127 points, while the BSE Sensex finished at 80,369.03, gaining 363.99 points.
The major gainers on the NSE included State Bank of India, Bharat Electronics Limited, Eicher Motors, HDFC Life, and SBI Life. In contrast, the primary losers in today’s trade were Maruti, Tata Motors, Hero MotoCorp, Dr. Reddy’s, and Sun Pharma.
Among the sectoral indices, banks, financial services, media, metals, public sector banks, private banks, real estate, consumer durables, and oil and gas all ended in the green. However, the sectoral indices for automobiles, fast-moving consumer goods (FMCG), IT, pharmaceuticals, and healthcare closed in the red.
Ola Electric shares traded below their IPO price of Rs 76, closing at Rs 76.64, down 1.22 percent.
“Markets recovered in the second half of the trading session, closing in the green for the second consecutive day and keeping the festive cheer alive,” said Vikram Kasat, Head of Advisory at PL Capital – Prabhudas Lilladher. “Private and PSU banks, along with other financial services stocks, led the rally, with these indices gaining over 2 percent. However, the pharma and auto indices experienced profit booking and closed in the red. While FIIs have pulled out nearly Rs 1.03 lakh crore from Indian equities in October alone, strong domestic institutional inflows are acting as a floor for markets, with net purchases amounting to Rs 98,491 crore,” he added.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that despite the persistent FII selling, retail investors have returned to buying mode. He added that the decline in the intensity of FII selling bodes well for the market, although FIIs may continue to sell.
