BSE’s Sensex surged 689.76 points, or 0.98 per cent, to settle at 71,060.31. NSE’s Nifty50 jumped 215.15 points, or 1.01 per cent, to end the day at 21,453.95 for the day.
SUMMARY
- Indian benchmark indices settled sharply higher on Wednesday.
- Sensex jumped about 690 points; Nifty ended above 21,450.
- Broader markets surged up to 1.7%; India VIX eased over 3.2%.
The domestic equity market experienced a recovery from the decline seen in the previous session, as the headline indices recorded substantial gains on Wednesday. Positive global cues, coupled with increased buying activity in the latter half of the session ahead of the expiry of the January series, elevated market sentiments. However, traders are adopting a cautious approach on Dalal Street due to mixed cues.
On the day, BSE’s Sensex witnessed a surge of 689.76 points, or 0.98 percent, settling at 71,060.31. NSE’s Nifty50 also saw a notable jump of 215.15 points, or 1.01 percent, concluding the day at 21,453.95. The broader markets outperformed the headline peers, with the BSE midcap and smallcap indices advancing approximately 1.7 percent each. The India VIX, a fear gauge, witnessed a decline of more than 3.2 percent, reaching the 14.38-mark.
The markets took a breather following Tuesday’s slide, gaining nearly a percentage amid volatility. While the tone was initially negative, a rebound in select heavyweights not only capped the decline but also assisted the Nifty in closing in the green. The broader indices also exhibited some recovery, according to Ajit Mishra, SVP – Technical Research at Religare Broking.
“Benchmark Sensex closed above the crucial 71,000 mark after a rebound from Tuesday’s sell-off, drawing inspiration from global peers. The sentiment received a boost from the PBOC’s decision to cut the reserve ratio, aimed at stimulating growth and financial liquidity,” said Vinod Nair, Head of Research, Geojit Financial Services. “Overall sentiment remains muted, with concerns lingering about FIIs selling due to premium valuations in India and below-expectation Q3 earnings.”
In the Nifty50 pack, Hindalco witnessed a surge of 4.7 percent, while Dr Reddy’s Laboratories, IndusInd Bank, and Tata Steel saw a rise of 4 percent each. HCL Technologies gained 3.5 percent for the day. Among the laggards, ICICI Bank saw a decline of 3 percent, while Axis Bank was down by 2.7 percent. Asian Paints dropped by 1.7 percent, and Adani Ports settled 1.2 percent lower at the close.
The market rebounded from yesterday’s sell-off, taking cues from global peers. The sentiment was reinforced by the PBOC’s cut in the reserve ratio to boost growth and financial liquidity, as mentioned by Vinod Nair, Head of Research, Geojit Financial Services. “Overall sentiment is muted as concerns persist regarding FIIs selling due to premium valuations in India and below-expectation Q3 earnings.”
A total of 3,884 shares were traded on BSE on Wednesday, of which 2,454 settled with cuts. 1,342 stocks ended the session with gains, while 88 shares remained unchanged. Throughout the day, 332 shares hit their upper circuit, whereas 268 shares tested the lower circuit levels for the day.
After witnessing heavy profit-booking in recent sessions, investors resorted to short covering ahead of the F&O expiry on Thursday, helping the benchmark Sensex close above the crucial 71,000 mark, according to Prashanth Tapse, Senior VP (Research), Mehta Equities.
“Despite the bounce back, one may see sharp gyrations in the market in the near to medium term due to a lot of uncertainty surrounding the West Asia conflict, renewed inflation worries, and a delay in rate cuts from the US Fed,” he added.
In the broader markets, Mahanagar Telephone Nigam, IFCI, and Transformers and Rectifiers (India) hit an upper circuit of 20 percent each. Andrew Yule and Company gained more than 19 percent, while Bombay Dyeing surged about 17 percent. South Indian Bank and HFCL rose by 13 percent each.
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