Sensex, Nifty pare losses to end higher as banking stocks gain

Benchmark stock market indices ended the trading session on a positive note despite falling sharply in early trade on Tuesday.
The S&P BSE Sensex rose 363.99 points to 80,369.03 at the closing bell, while the NSE Nifty50 gained 127.70 points to settle at 24,446.85. Most of the broader market indices, including smallcap and midcaps, staged a stronger recovery.
The turnaround on Dalal Street was powered by banking stocks, with recent Q2 performances highlighting the positive performance of the sector.
The top five gainers on the Nifty50 were SBI, BEL, Eicher Motors, HDFC Life and SBI Life. On the other hand, the top losers were Maruti, Tata Motors, Hero MotoCorp, Dr Reddy’s and Sun Pharma.
Aditya Gaggar, Director of Progressive Shares, said, “Indian bourses have witnessed a complete reversal in today’s trade as Nifty50 started the day on a tepid note and weakness in the Mid and Smallcap counters put further pressure on the Index to trade lower. In the 2nd half of the trading session, the turnaround was seen across the board which supported the Index to recover all its losses to end the day at 24,466.85 with gains of 127.70 points.”
“On the sector-wise performance, Banking indices were top gainers followed by Realty whereas Auto and Pharma corrected the most. Mid and Small Caps outperformed the Frontline Index,” he noted.
“The Index has formed a bullish candle and is on the verge of giving a breakout from a Falling Wedge formation while the leading indicator RSI has given a positive crossover suggesting a trend reversal. A level of 24,570 will be considered a breakout point while the Index managed to defend yesterday’s low of 24,140 which will serve as immediate support,” Gaggar added.