Market takes virus in stride

Strong built-in upward momentum lifted the Sensex 672.71 points or 1.14 per cent to 59855 points with institutional buying support despite fast rising Covid cases in India and the US.

The Nifty-50 Index gained 179.55 points or 1.02 per cent to close at 17805.25.

With the Union Budget less than a month away some early buying seems to have started for institutional investors returning after holidays to cover their short positions across the sectors, said analysts.

Reliance Industries and ONGC gained 2.22 per cent and 3.25 per cent, respectively.

Encouraging domestic exports data, positive global cues, earnings expectations also seem to have kept market sentiments positive in the large-cap space while the broader market underperformed with BSE Mid-cap Index up just 0.05 per cent and BSE Small-cap up by 0.39 per cent.

Foreign portfolio investors and domestic institutions were net buyers of equities worth Rs 1,273.86 crore and Rs 532.97 crore, respectively, on Tuesday.

While fresh Covid cases reported in the last 24 hours in India were 37,379, Mumbai alone reported more than 10K cases

(10,860). Globally the US remained the worst hit with the last 24 hour seeing new Covid cases crossing one million.

"The risk-on mood prevailed at Dalal Street despite elevated US bond yields, a modest USD strength, continuous surge in new Covid-19 cases and a hawkish Fed backdrop," said Prashanth Tapse, VPresearch, Mehta Equities.

The sectoral performance was mixed. The BSE Bankex and Power gained

1.31 per cent and 2.25 per cent respectively.