Equity Benchmarks Extend Gains For Second Consecutive Day On Strong Global Cues
Indian equity benchmarks continued their rally for the second consecutive day on the back of strong global cues and an overnight rally on Wall Street. Falling crude oil prices due to slower anticipated demand because of the lockdown in Shanghai, China and prospects of peace talks between Russia and Ukraine also boosted investor sentiment.
The 30-share pack Sensex advanced 350.16 points or 0.61 per cent at 57,943.65. Its broader peer NSE Nifty rose 103.30 points or 0.60 per cent to close at 17,325.30.
"The steady rise in markets in the last few sessions is due to hopes that the peace talks between the two warring nations could help provide some solutions to end the stalemate. On the other hand, the falling crude prices at a time when inflation has been a major concern worldwide is adding to the optimism. But all eyes will be on the US Fed as rising yields could trigger another rate and may put investors in a spot in the near to medium term," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Ukrainian and Russian negotiators met in Turkey on Tuesday for the first face-to-face talks in nearly three weeks. Ukraine and the United States hold little hope of an immediate breakthrough.
"The market mood remained relatively upbeat amidst falling crude-oil prices on backdrop of media reports that Russia was no longer going to demand Ukraine be "denazified" in the upcoming negotiations," said Prashanth Tapse, Vice President (Research), Mehta Equities.
Financials and pharmaceutical stocks dominated gains in Mumbai, with the Nifty financial services index advancing 1 per cent on a 3.1 per cent jump in mortgage lender HDFC. The Nifty Pharma index climbed 1.5 per cent, led by a 6 per cent surge in IPCA Laboratories.
Truckmaker Eicher was the biggest percentage gainer on the Nifty 50, rising 4.2 per cent to a near one-month high.
However, a 7 per cent drop in Hero MotoCorp dragged the Nifty Auto index lower as income tax authorities found that the company made more than 10 billion rupees in bogus expenses.
"We are of the view that as long as Nifty is trading above the 50-day SMA the short term texture is positive. For the trend following traders, the support has shifted to 17250 from 17100. Above the level of 17250, the index could touch the level of 17450 and 17500. However, a quick intraday correction up to 17200-17140 is not ruled out if the index trades below 17250," said Chouhan
Shares of edible oil maker Ruchi Soya Industries surged 15.8 per cent. India's market regulator gave investors an option to withdraw their applications from the company's follow-on public offering after messages were circulated advertising a discount to the offering.
Adani Power extended gains to a fifth day, rising 14 per cent to a record high.
(With inputs from Reuters)
