IT & Metal Bulls Return to Lift Markets; Strong Dollar Lifts Tech Stocks 

Mumbai, April 7: Indian equity benchmarks soared on Tuesday as bulls stormed back on Dalal Street after morning hesitancy. Market volatility in Mumbai ended up being a thing of the morning after a big late-session rally propelled bulls back into the market fray. Most of the day’s gains were contributed by buying interest in Information Technology and Metal stocks.

One of the biggest reasons for today’s rally was a strengthening dollar that helps margins for India’s IT exporters. As the dollar turned higher on the back of hawkish comments from Fed officials during the Asian session, IT stocks traded with renewed vigour as market participants looked to book strong offshore revenue. Stocks To Watch: IT Stocks

IT Stocks 

Wipro’s shares closed 3.71% higher at ₹204.60, rising sharply from yesterday’s closing price of ₹197.29. Hindalco added 2.97% to ₹955 as metal prices across the board rose from yesterday’s closing price of ₹927.45. Top IT bellwethers didn’t disappoint, TCS climbed higher by 2.81% to ₹2,543.50 rising ₹70 on the day from yesterday’s close of ₹2,473.90. HCLTech and Infosys weren’t far behind with each rallying over 2.5%. HCLTech closed the day at ₹1,440.50 as compared to yesterday’s closing price of ₹1,403.30. Infosys jumped 2.59% to ₹1,340 compared to yesterday’s close of ₹1,306.20. Thanks to a strong showing from frontline stocks, all session losses were erased allowing bulls to make a triumphant return.

Metal Stocks

The Nifty Metal index emerged as a key driver of the market recovery on April 7, surging by 1.55% to close at 11,762.65. This rally was spearheaded by Vedanta, which jumped 3.36% to ₹713.20, and Hindalco, which rose 2.97% to end the day at ₹955.00. Other significant contributors included Hindustan Zinc and JSW Steel, which posted gains of 2.33% and 1.89% respectively as industrial commodity demand strengthened.

Sensex

The 30-share BSE index Sensex closed higher on April 7 after flirting with the negative in early trade. Late session buying interest in IT and metal stocks helped Mumbai markets recover some of the previous session’s losses. The BSE Sensex climbed about 500 points or 0.69% to finish above 74,600. Similarly, the Nifty 50 pared all its losses to settle 155 points or 0.68% higher at above 23,100. Both Sensex and Nifty 50 erased all their session losses on strong buying at lower levels. Bulls were quick to pile in during the last hour of trade leading to a healthy technical recovery for Indian equity benchmarks.

NIFTY 100

The NIFTY 100 index closed at 23,730.25, gaining 0.64% or 150.8 on a bright day for blue-chip Indian stocks. This move was in-line with the Nifty 50 benchmark which also gained around 0.65% on heavy-weight IT buying.

NIFTY 200

The NIFTY 200 closed 12,958.15, up 0.56% or 71.75. The Nifty 200 underperformed the Nifty 100 by 0.08% but still moved higher confirming broad-market participation in today’s rally.

Sources: 

• https://www.nseindia.com/market-data/top-gainers-losers
• https://www.nseindia.com/market-data/live-market-indices
• https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%20200
• https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%20IT