After remaining in the red for most part of the day, domestic markets on Tuesday shot up over 1 per cent in the last hour of trade on positive global cues.
Despite high crude prices, the Sensex bounced back 1,059 points from the day’s low of 56,930 to end at 57,989.30, up 697 points, or 1.22 per cent. It hit an intra-day high of 58,053. The Nifty closed at 17,315.50, up 198 points, or 1.16 per cent. The rally was led by IT, oil and gas, and energy stocks. Reliance Industries was among the top gainers in the Sensex pack, rising 2.59 per cent.
In the early hours of trading, domestic markets fought back the lows caused by a hawkish US Fed and rising oil prices. However, the rise in global markets buoyed sentiments of investors here.
Vinod Nair, head of research, Geojit Financial Services, said, “The domestic market started with a negative bias taking cues from rising crude prices and hawkish signals from Fed on aggressive policy tightening. However, the trend reversed as European markets opened on a positive note buoyed by hope that Ukraine may consider working towards a truce.”
Analysts said a hawkish US Fed and the 10-year yield in the US rising to 2.29 per cent are headwinds for global markets.