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The Indian equity benchmark indices closed higher for the second straight session despite weakness in Asian markets. The frontline indices staged recovery in the second half of the session, as financial services, oil & gas, and IT stocks, along with index heavyweight Reliance Industries led the gains.
The 30-scrip Sensex closed at 59,744, as it rose 445 points. And the Nifty50 index surged 130 points to end at 17,822. The broader markets supported the rally as both mid-caps and small-caps rallied half a percent higher. The midcap index rose over 134 points to post a record close of 31,009.
PSU companies gained momentum in the session today and ended up being the top Nifty gainers. Among the 50 stocks on Nifty, ONGC, IndusInd Bank, Coal India, IOC, and Bharti Airtel lead the gains, as each scrip rose over 2.5 to 5 percent higher and ONGC surged over 11 percent.
Leading the losses were Cipla, Hindalco, Shree Cement, Sun Pharma, and Tata Consumer. The shares of Reliance Industries Limited hit an all-time high of Rs 2,612 per share. Its market cap surged to near 17.5 lakh crore.
Among sectors on NSE, a strong rally was seen in IT, banking, financial services, media and oil & gas stocks. Whereas PSU Banks, metals, pharma, realty, and healthcare indices ended in the red. Nifty Bank gained over 370 points from intraday low to close 160 points higher at 37,741.
The IT index also gained ahead of the second-quarter earnings; HCL Tech and TCS were two of the top gainers today. OPEC+'s decision to maintain a gradual hike in oil output helped ONGC surge 11 percent. On the other hand, due to a coal shortage in the country, Coal India surged over 4 percent.
Globally, world shares steadied near lows as worries that rising oil prices will feed inflationary pressures appeared to ease. MSCI's gauge of global stocks was down marginally but off a more than three-month low hit during Asian trading.
European stocks rose 0.3 percent and Wall Street was also set for a rebound with futures on Nasdaq and S&P 500 rose slightly.
Asian shares, however, fell for a third straight day, catching up with heavy losses in the United States, where investors dumped Big Tech as Facebook was hit by a nearly six-hour outage.
But investors remained cautious, worrying the rally in energy prices and supply chain disruptions could derail the economic recovery just as the US Federal Reserve gets closer to reducing its massive stimulus.
Oil prices hit their highest levels in at least three years, extending gains from the previous session that came after the world's major oil producers announced they had decided to keep a cap on crude supplies. Benchmark oil indices surged half a percent with Brent crude at $81.75 a barrel, and US oil at $77.94. Gains in the dollar depressed gold prices, which eased over half a percent to $1,757 per ounce.
With inputs from Reuters