The Sensex and Nifty both finish higher as a result of gains in energy and technology stocks

Despite investor trepidation over inflationary concerns caused by higher crude oil prices, Indian stocks finished higher on Tuesday, as technology stocks recovered from early losses and the energy index reached a new high.

The NSE Nifty 50 index closed 0.74 percent higher at 17,822.3 points, while the S&P BSE Sensex closed 0.75 percent higher at 59,744.88 points.

According to Anita Gandhi, director at Arihant Capital Markets in Mumbai, the undertones for Indian markets have been positive this season due to good rainfall and advance tax payments.

This year, Indian markets have outperformed the rest of the world, rising more than 25% to outperform the US and other emerging markets, thanks to abundant liquidity and increased business activity.

The Nifty IT Index ended the day 1.19 percent higher after falling 0.98 percent earlier in the session. Tech Mahindra, Tata Consultancy Services, Mphasis, and HCL led the charge, gaining 1% -2.07 % ahead of the September-quarter earnings season, which begins this week and runs through the end of the month.

The Nifty Energy Index closed the day at a new high, up 2.8 percent from the previous close

Oil and Natural Gas Corp, a state-owned oil and gas exploration company, led the gains with a 10.1 percent gain during the session, the company’s largest gain since July 2019.

The price of crude oil reached its highest level in at least three years after the world’s major producers decided to maintain a supply limit on crude supplies. Companies like ONGC and its subsidiaries benefit from higher crude prices as inflationary fears spread throughout the economy.

For example, Bharti Airtel and Vodafone Idea finished the day up 2.6 percent and 1.3 percent, respectively. The Indian government’s telecoms department, according to local media reports, was considering charging telecom operators a one-time spectrum fee.

Investors are now looking forward to the outcome of a central bank policy meeting later this week in order to learn more about the bank’s plans to exit its accommodative monetary policy.


Leave a Reply

Your email address will not be published. Required fields are marked *