Wednesday Trading Ends With Rebound; All Indices Green

The Indian stock market experienced a significant recovery in the Wednesday trading session on the indication of positive global cues. Investors now eye on the domestic monetary policy and economic outlook by the central bank. 

The National Stock Exchange (NSE) Nifty 50 index ended 1.27 per cent higher at 24,297 whereas the S&P Bombay Stock Exchange (BSE) Sensex settled 874 points or 1.11 per cent higher at 79,468 levels on the closing bell. 

Nifty Moves

In the Nifty 50 index, 42 stocks advanced in the positive territory and 7 stocks ended in the red territory, while Asian Paints remained unchanged.  

Among the winners were PSUs stocks ONGC and Coal India with 7.5 per cent and 6.4 per cent gain respectively. Adani Enterprises, Adani Ports, Power Grid and Shriram Finance also climbed more than 3 per cent. 

In the laggards, IndusInd Bank shredded 2.6 per cent and Eicher Motors shredded more than 1 per cent. Tech Mahindra, Britannia, Titan, Hindustan Unilever and Bharti Airtel also ended in the green. 

Analyst Note  

“Domestic markets rallied sharply much in sync with optimism in global equity indices, although risk on sentiment could still prevail on the back of rising tension in the Middle East. Markets may have got little respite from the recent carnage, but indices may witness sharp intra-day volatility due to global uncertainty,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

"Global markets experienced a notable rebound after the BoJ's Deputy Governor reassured that the central bank would not raise interest rates during a period of financial instability. The carry trade issue appears to have been eased for now and the focus is on the ongoing RBI policy, which is likely to hold the rate and positive economic outlook," said Vinod Nair, Head of Research, Geojit Financial Services.

Sectoral Movement

In terms of sectoral performance, Nifty Bank and Financial Services ended 0.75 per cent and 1.26 per cent higher respectively. While PSU Banks gained more than 1 per cent. 

Metal led the sectoral gains with 2.69 per cent followed by more than 2 per cent gain in Pharma. Auto rallied 1. 7 per cent, while Realty gained 1.8 per cent on indexation benefits declared by the government. IT and FMCG also ended more than 1 per cent higher. 

The more domestically focussed indices, Mid-cap surged 2.45 per cent, whereas Small-cap climbed 2.86 per cent.