The Indian equity benchmarks edged higher on Tuesday, defying the weak trend in global markets, paced by gains in information technology and FMCG heavyweights like Tata Consultancy Services (TCS), Infosys, HCL Technologies, Hindustan Unilever, ITC and Tech Mahindra. The Sensex rose as much as 288 points and Nifty 50 index moved above its important psychological level of 17,450. Global stock markets on Tuesday were caught in the grip of contagion fears sparked by troubles at China Evergrande as growing risks the property giant could default on its massive debt prompted investors to flee riskier assets.
Selling pressure persisted in early trade in Asia ahead of a major test for Evergrande this week, which is due to pay $83.5 million in interest relating to its March 2022 bond on Thursday. It has another $47.5 million payment due on Sept. 29 for March 2024 notes. Japan’s Nikkei fell 2.0 per cent, resuming trade after a market holiday on Monday while MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.2 per cent.
Back home, the Sensex was up 52 points at 58,543 and Nifty 50 index advanced 27 points to 17,424 by 9:24 am.
Back home, the Sensex was up 213 points at 58,704 and Nifty 50 index advanced 53 points to 17,450 by 9:31 am.
Buying was visible across the sectors as thirteen of 15 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Realty index’s over 2 per cent gain. Nifty IT, FMCG, Metal and Pharma indices also rose between 0.3-0.8 per cent.
On the other hand, Auto and Healthcare indices were trading with a negative bias.
Mid- and small-cap shares were trading on a subdued note as Nifty Midcap 100 index was little changed while Nifty Smallcap 100 index slipped 0.21 per cent.
ONGC was the top Nifty gainer, the stock rose nearly 4 per cent to Rs 133. Coal India, HCL Technologies, NTPC, JSW Steel, Hindustan Unilever, Asian Paints, Grasim Industries, Eicher Motors, Reliance Industries and Larsen & Toubro also rose between 0.7-2 per cent.
On the flipside, Maruti Suzuki, Bajaj Finserv, Tata Motors, Axis Bank, Nestle India, Bajaj Auto, HDFC Bank, Bajaj Finance, Hero MotoCorp and ICICI Bank were among the losers.
The overall market breadth was negative as 1,404 shares were declining while 1,131 were advancing on the BSE.