NEW DELHI: The bulls made a strong comeback on the Dalal Street on Monday after two sessions of sharp losses. The BSE Sensex rose as much as 1,158 points or 2% intraday and the Nifty 50 index moved above the 17,250-level.
During the last hour of the trading session, the two indexes shed some points with Sensex closing 887 points higher (or 1.5%) at 57,634 and Nifty 50 shutting shop up 264 points at 17,177 (1.5%).
Investor sentiment got a cheer up on Tuesday on hopes that the Reserve Bank of India will likely keep its key borrowing and lending rates unchanged on Wednesday amidst the fast spread of the Omicron coronavirus variant. Add to it, White House medical advisor’s comment that the omicron variant might not be very dangerous lifted investors’ mood worldwide.
“Equity markets witnessed a share rebound on the back of positive global cues. Comments from the US stating that the new virus might be less effective than earlier feared helped elevate global sentiments. Both Sensex and Nifty closed with gains of over 1.5%. Buying was witnessed in banking metals and auto stocks ahead of the RBI meeting on interest rates,” Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said.
He added that while the markets have seen some relief today, overall volatility is likely to remain for some more time until Foreign institutional investors (FIIs) selling reduces. Investors should await cues from the global Central banks for direction on the monetary policy as well as interest rates. Many analysts also feel that given the uncertainties of the Omicron variant on the economy, it is better to adopt a wait-and-watch approach.
Santosh Meena, Head of Research, Swastika Investmart said that we are seeing the first meaningful correction that has completed its 10% from highs of 18604 (Nifty) at the low of 16789.