UPDATED: March 30, 2021 16:58 IST
Domestic benchmark indices on Tuesday surged sharply after a strong opening on Tuesday. At around 2:40 pm, S&P BSE Sensex surged nearly 1,200 points or 2.35 per cent, while NSE Nifty50 jumped by nearly 350 points.
There are several factors that contributed to today’s impressive market rally including gains by banks, metal and financial stocks.
KEY FACTORS BEHIND MARKET RALLY
One of the key reasons behind the strong rally was the performance of bank shares, which rose sharply after JSW Steel completed an insolvency process that allowed lenders to recover some of their bad loans.
JSW Steel had said on Friday that it had completed a resolution plan for Bhushan Steel and Power, including payment of Rs 193.50 billion to financial creditors.
Some of the major lenders to Bhushan Steel, including the State Bank of India, Punjab National Bank and Canara Bank were up over one per cent, while ICICI Bank gained over 2 per cent.
The Nifty Bank index rose nearly 1.9 per cent and the PSU Bank index gained over 1.2 per cent. The Nifty Metal index rose over 2.5 per cent and was the leading sectoral gainer.
The market mood was also lifted by a strong performance by metals, pharma and FMCG stocks. Some of the top gainers on the Sensex pack were Infosys, Powergrid, HCLTech, TCS, Hindustan Unilever, HDFC Bank, HDFC, Titan, Dr Reddy’s, ONGC, Reliance, IndusInd Bank and NTPC.
Shares of steel companies also rose sharply and contributed to today’s stock market rally. Shares of Steel Authority of India Ltd, Jindal Steel and Tata Steel rose nearly 4% each.
Meanwhile, another factor that contributed to today’s market rally was upbeat global cues.