Closing Bell: Nifty above 16,900, Sensex gains more than 1000 points; Realty, metal, bank fuel rally

The Indian markets ended higher by more than 1.5% amid hopes of resolution of Russia and Ukraine crisis and rise in treasury yields, expecting interest rate hike by US Federal reserve. Treasury yields hit their highest since mid-2019 in anticipation of the first US interest rate hike in three years, said Reuters. Ukrainian President Volodymyr Zelensky said on Wednesday peace talks between Russia and Ukraine were sounding more realistic but more time was needed, it reported.

The broader Nifty gained 1.8% to end at 16,975.35, while the Sensex surged around 1000 points to settle at 56,816.65 amid positive global cues.

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Midcap and small cap indices gained between 1 to 2% as India VIX stood near 24-level.

Sector wise, Realty saw maximum buying interest, while metal, banking, financial services, consumer durables and oil & gas all ended with nearly 2% gains or more.

Ultratech Cements was top gainer on both Nifty and the Sensex with over 4% rise. Axis Bank, IndusInd Bank, Shree Cement, Bajaj Auto, Infosys, Bajaj Finance, HDFC Ltd and Tata Steel were fueled the rally. Cipla, Sun Pharma, Tata Consumer and Power Grid ended marginally lower in an otherwise positive market.

“Nifty has staged a strong recover with a combination of value and momentum. We expect the uptrend to sustain for the medium term. The March series expect limited downside with resistance placed at 17200-17300 levels,” said Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities.

On the downside support is seen at 16500-16600 levels, he said. “Buying on Dips is advisable with focus on Cement, NBFC and Consumption space. Metals are expected to consolidate with high volatility,” he added.

(Disclaimer: The views / suggestions / advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

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