Sensex jumps over 1,300 pts, Nifty ends at 16,250; LIC shares close nearly 8 pc lower

Stock Market May 17 Updates: This was the second straight day when the stock market ended in the green. Also, this was the biggest single-day jump taken by Sensex in nearly three months.

By Aalok Sensharma
Updated: Tue, 17 May 2022 04:16 PM IST
Minute Read
Sensex jumps over 1,300 pts, Nifty ends at 16,250; LIC shares close nearly 8 pc lower

New Delhi/ Mumbai | Jagran Business Desk: The 30-share BSE Sensex made a strong recovery on Tuesday, rising by 1,344.63 points or 2.54 per cent to close at 54,318.47. Likewise, the 50 NSE Nifty jumped by 417 points or 2.63 per cent to close at 16,259.30 with the investors focussing on the market debut of state-owned Life Insurance Corporation (LIC).

This was the second straight day when the stock market ended in the green. Also, this was the biggest single-day jump taken by Sensex in nearly three months.

All index stocks registered at the Bombay Stock Exchange (BSE) ended in green with Tata Steel - which jumped by 7.62 per cent - being the top gainer, followed by Reliance, ITC, Wipro, L&T, ICICI Bank, HCL Tech, Maruti Suzuki India, Bajaj Finance, Titan, and State Bank of India (SBI). 

However, LIC shares fell nearly 8 per cent on their market debut despite the country's largest ever IPO being oversubscribed at the top of the price range. The government raised around USD 2.7 billion from selling a 3.5 per cent stake in state-owned LIC which commands a majority of the market.

Market experts blamed the "unpredictable conditions" for the weak debut of LIC. They believe that the LIC can perform better when there is a "bounce in the market and positive performance in the insurance sector".

"The subdued listing of LIC is in-line with expectations in context to the drop in market dynamics from the opening of the IPO to the listing date," News18 quoted Vinod Nair, Head of Research at Geojit Financial Services, as saying.

"The listing price has fallen in tandem with the fall of insurance sector valuations, maintaining the discount of about 70 per cent to the industry's average. Positively, the stock was brought at the dip," Nair added.

Meanwhile, international oil benchmark Brent crude gained 0.49 per cent to USD 114.8 per barrel. Foreign institutional investors continued to offload shares worth Rs 1,788.93 crore on Monday, according to stock exchange data. 

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