Indian indices surged around 1.5 percent on Tuesday snapping 2 sessions of losses amid a broad-based rally across global peers. Back home, the gains were aided by all sectors, especially auto and banking. The rise in bluechip stocks like Reliance, Infosys, ICICI Bank and ITC also added to the recovery.
The Sensex ended 777 points higher at 57,357, while the broader Nifty rose 247 points to settle at 17,210. Broader markets were also in line with the benchmarks with the Nifty Midcap index up 1.6 percent and Nifty Smallcap index up 1.2 percent.
"An interesting feature of the current volatile global equity market trend is that sharp dips in the market are followed by sharp upmoves. Dips caused by increasingly hawkish comments from the Fed, prolonging war in Ukraine and harsh lockdowns in China are getting bought resulting in recoveries. Whether it is in the US or India, retail investor enthusiasm is supporting markets even on negative news," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.
On Sensex, only 4 stocks ended the day in the red - Axis Bank, Asian Paints, Maruti, Wipro and TCS. Meanwhile, PowerGrid, Titan, M&M, Reliance and Bajaj Finance were the top gainers.
On Nifty, Bajaj Auto, Adani Ports, Hero Moto, Powergrid and Titan rose the most, up between 4-6 percent while ONGC, Apollo Hospitals, Axis Bank, Hindalco and Maruti led the losses.
All sectors were also in the green with Nifty Realty surging the ost, up almost 4 percent. Nifty Auto and Nifty Energy rose around 3 percent each while Nifty FMCG added 1.8 percent. Nifty Metal was also up 1.3 percent while Nifty Pharma and Nifty Bank rose around a percent each.
Vijayakumar added that this heightened volatility is likely to continue in the coming days. Investors can use the volatility to buy high-quality stocks across segments.
Banking stocks are at buyable valuations and IT stocks after the recent correction are good long-term bets, he suggested.
