22 Dec , 2021 By : Kanchan Joshi
MUMBAI : Stocks witnessed a strong rebound on Tuesday, a day after investors were hit by a bruising sell-off triggered by mounting fears of the fast-spreading Omicron variant of the covid-19 virus.
The BSE Sensex rose 0.89% to end trading at 56,319, while the National Stock Exchange’s Nifty gained 0.94% to 16,770.85. During the day, the two indices hit highs of 56,900.74 and 16,936.40, respectively, before paring some of the gains later.
Buying in metal and information technology stocks helped the market maintain gains, said Mohit Nigam, head of portfolio management services at Hem Securities.
Local stocks followed cues elsewhere in Asia, where stock indices rose, shrugging off the sell-off seen in the previous session. Japan’s Nikkei surged 2.08% on Tuesday, while Hang Seng and Shanghai Composite closed with gains of 1% and 0.88%, respectively. “Asian shares were mostly higher on Tuesday after a worldwide slump for financial markets spurred by worries about how badly the Omicron variant, inflation and other forces will hit economies. European shares rebounded on Tuesday after a brutal sell-off in the previous session, with a jump in commodity stocks offsetting concerns about Omicron," said Deepak Jasani, head of retail research at HDFC Securities.
The broader Euro STOXX 600 rose as much as 1.1% on Tuesday, with Germany DAX’s adding 1% and London’s FTSE climbing 0.9%. “The positive takeaway from today’s trading session was that Nifty rebounded sharply higher as dollar dipped, the US Treasury yields stabilized and, most importantly, despite Omicron variant fears continuing to loom," said Prashant Tapse, vice-president (research) at Mehta Equities Ltd.
“In a few weeks, we’ve gone from caution to scepticism, to panic and back to optimism. But, digging deeper, emotions are likely to be the name of the game," he added.
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