India’s equity benchmark indices Sensex and Nifty50 closed higher owing to fag-end buying after a highly volatile session on Wednesday led by information technology (IT) stocks ahead of quarterly results and key inflation readings which could influence the interest rate outlook.
Index heavyweight Reliance Industries and banking stocks also contributed to gains.
The 30-share BSE benchmark Sensex surged 272 points or 0.38% to settle at 71,657. The broader NSE Nifty rose 74 points or 0.34% to end at 21,618.
From the Sensex pack, Reliance Industries and HCL Tech were the top gainers, rising 2.8% and 2.2%, respectively. ICICI Bank, Tata Motors, Wipro, IndusInd Bank, and JSW Steel also closed higher. On the other hand, NTPC, Power Grid, UltraTech Cement, and Axis Bank closed lower.
SpiceJet shares closed 5.2% higher after Carlyle Aviation Partners reportedly expressed interest in the airline. The company will also hold its annual general meeting (AGM) later on Wednesday to consider the adoption of its audited financial statements along with the issue and allotment of equity shares on a preferential basis.
Cochin Shipyard shares closed in 20% upper circuit as the stock turned ex-date for a stock split.
On the sectoral front, Nifty Media rose 3.5%, and Nifty Metal surged nearly 1%. Nifty Bank, auto, IT, pharma, and consumer durables also ended higher.
The market capitalisation of all listed companies on BSE increased by Rs 1.3 lakh crore to Rs 368.77 lakh crore. The market breadth was skewed in favour of the bulls. About 2,078 stocks gained, 1,760 declined, and 97 remained unchanged on the BSE.
Investors will also keenly watch US consumer prices data, scheduled for release on Thursday and India’s retail inflation data, due on Friday.
Expert Views
“The weakness in global indices continued to weigh down the domestic indices with every up move. The market is looking for fresh triggers for a direction, and the release of US and Indian inflation data may provide a near-term direction in the market,” said Vinod Nair, head of research at Geojit Financial Services.
The investor’s focus will be shifted to the earnings season, on a sequential basis, the earnings growth is likely to be lower, while the expectations for auto, capital goods, and cement will remain strong, Nair added.
Aditya Gaggar, director of Progressive Shares, said, “By retesting its dual support of 21,470 as well as 21DMA, the index has formed a piercing candlestick pattern, which is bullish and indicates a resumption of the current uptrend. A zone of 21,430-21,470 will act as a strong support while the immediate resistance comes at 21,725-21,750.”
Global Market
Japanese stocks hit a 34-year high on Wednesday while global equities held steady before US inflation data on Thursday.
Japan’s Nikkei, which had its best year for a decade in 2023, climbed 2% to break above 34,000 for the first time since 1990. The pan-European Stoxx 600 index was flat in early trading, while Britain’s FTSE 100 was 0.19% lower and Germany’s DAX index was up 0.2%.
Futures for the US S&P 500 were up 0.19% after the index dipped 0.15% on Tuesday. Nasdaq 100 futures were 0.37% higher.
Crude Oil Declines
Oil steadied on Wednesday, giving up earlier gains, as Middle East supply concerns arising from the Israel-Hamas war and the shutdown of a top Libyan oilfield balanced worries about weak economic growth.
Brent crude futures fell 23 cents, or 0.3%, to $77.36 a barrel, while US West Texas Intermediate crude futures slipped 15 cents, or 0.2%, to $72.09.
Rupee Rises
The Indian rupee recouped early losses to end higher for a sixth consecutive session on likely foreign inflows.
The rupee settled at 83.0350 against the US dollar — its highest closing level since December 15, against its close of 83.1150 in the previous session.
(With inputs from agencies)
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