Equity market rise on fresh inflows; Q3 expectations
Mumbai: Despite heavy volatility, fresh inflows of foreign funds and buying interest in FMCG, banking and realty stocks lifted the Indian equity market for the fourth straight session on Wednesday.
Accordingly, the BSE Sensex crossed the 36,000-mark while the NSE Nifty50 reclaimed the 10,850-level. The rise came after a sharp dip in the mid-afternoon session.
The domestic investor sentiment was boosted by firm global markets and expectations of healthy corporate earnings for the October-December quarter.
Globally, investor sentiment was upbeat after the US-China trade talks concluded during the day. Investors expect a positive outcome from the three-day talks.
Index-wise, the Nifty50 rose by 53 points or 0.49 per cent to settle at 10,855.15 points.
The Sensex closed at 36,212.91 points, higher by 231.98 points or 0.64 per cent from the previous close of 35,980.93 points. It had opened at 36,181.37 and touched an intra-day high of 36,250.54 and a low of 35,863.29 points.
“The market started on a positive note but took some caution ahead of major quarterly results scheduled tomorrow. In totality with expectation of a breather from the US-China meeting which concluded today led the market to close on a positive bias,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Buying interest has been seen across sectors led by private banks, IT and FMCG while PSU banks declined due to profit booking post recent gains.”
The Indian rupee stood weaker by 26 paise at Rs 70.46 per dollar from its previous close of 70.20. In just two days the rupee has lost over 75 paise.
On the other hand, Brent crude futures rose to around $59 per barrel.
“Technically, with the Nifty moving up further, traders will need to watch if the recent gains can sustain in the near term. Further upsides are likely once the immediate resistances of 10,870 are taken out,” said Deepak Jasani of HDFC Securities.
“Crucial supports to watch for resumption of weakness is at 10,815.”
Investment-wise, FIIs bought Rs 276.14 crore while DIIs bought stocks worth over Rs 439.67 crore on Wednesday.
Stock-wise, the top gainers on Sensex were Axis Bank, ITC, Tata Motors, Bharti Aitel, HDFC which inched up in the range of 1 to 3 per cent.
In contrast, Yes Bank lost 3.07 per cent and Tata Steel, ONGC, Heromoto Corp, NTPC declined up to 2 per cent. (IANS)
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