Value buying, global cues lift equities, metal stocks rise

Value buying as well as positive global cues aided India's equity market to snap a two-day losing streak on Tuesday.

Initially, both the key equity indices had a gap up opening in line with other Asian markets.

However, in the post-noon session, the indices started to correct mildly on the back of concerns over the spread of Omicron variant, along with FIIs' stock selling.

Globally, most Asian and European markets closed higher.

On the domestic front, volumes were lower than the recent average. Among sectoral indices, Metals, Consumer Durables and IT gained the most.

Consequently, the S&P BSE Sensex traded at 56,319.01 points, up 0.8 per cent or 497 points from its previous close.

The broader 50-scrip Nifty at National Stock Exchange (NSE) rose to 16,770.85 points, up 156.65 points or 0.94 per cent from its previous close.

"Nifty in its bounce has faced resistance from the down gap of 16,966. It corrected from above but still managed to end in the positive. This upward momentum could last a couple of days," said Deepak Jasani, Head of Retail Research, HDFC Securities.

According to Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services: "After more than 10 per cent correction, Nifty is now trading at 19.2x FY23 P/E and is no longer in the expensive zone.

"The overall selling pressure is intact at higher levels and any recovery or bounce is being used by the traders to sell in the market. Thus, for the near to short term, we maintain a cautious view and suggest traders to continue with ‘sell on rise' strategy."

Vinod Nair, Head of Research at Geojit Financial Services, said: "The Indian market is attempting to recover from Monday's heavy selloff. The domestic indices staged a gap-up opening on bargain hunting supported by positive sentiments across global markets.

"Although concerns surrounding the impact of Omicron and FII selling still linger, investors are trading cautiously and are optimistic. Gains in IT, commodities and metal stocks lifted the indices higher."