Mkts rebound on macro data
Positive global cues, solid direct tax collection propelled key indices up; Robust FII and DII inflows sustained; Reliance, ITC shares rally
Mumbai: Benchmark equity indices Sensex and Nifty rebounded on Wednesday, propelled by bargain hunting in index majors Reliance Industries, ITC and SBI amid a largely firm trend in global equities. However, a depreciating rupee and selling pressure in small-cap stocks restricted the gains, traders said. In a highly volatile trade, the 30-share BSE Sensex rose 89.64 points or 0.12 per cent to settle at 72,101.69. During the day, it jumped 390.62 points or 0.54 per cent to 72,402.67. The benchmark hit its day’s low of 71,674.42, down 337.63 points or 0.46 per cent. The NSE Nifty climbed 21.65 points or 0.10 per cent to finish at 21,839.10.
“Lifted by favourable global sentiment and solid direct tax collection, Indian markets rebounded, closing with modest gains. Robust FII and DII inflows sustained the market. The US Fed is likely to delay the cut rate to the latter part of the year due to a resilient economy. Domestic mid and small caps are likely to lag large caps driven by premium valuations in the short-term,” said Vinod Nair, head (research), Geojit Financial Services.
“Nifty recovered losses to end higher on March 20. Asian shares closed mostly higher, while European markets opened lower Wednesday as investors awaited the latest signals from the Federal Reserve on the timing of cuts to interest rates,” said Deepak Jasani, head (retail research), HDFC Securities.
In the broader market, the BSE mid-cap gauge climbed marginally by 0.05 per cent and small-cap index dipped 0.14 per cent. Among the sectoral indices, energy jumped 1.09 per cent, oil & gas (1.07 per cent), power (0.92 per cent), telecommunication (0.61 per cent), auto (0.47 per cent) and utilities (0.45 per cent). On the other hand, commodities, financial services, IT, metal and teck were the laggards.
From the Sensex basket, Maruti, Nestle, Power Grid, State Bank of India, ITC, Reliance Industries, Kotak Mahindra Bank, Bajaj Finance, IndusInd Bank and Asian Paints were the major gainers. In contrast, Tata Steel, Axis Bank, Tata Motors and HDFC Bank were among the laggards.
In Asian markets, Seoul, Shanghai, and Hong Kong settled in positive territory. Japanese stock exchanges were closed for a holiday. European markets were trading on a mixed note. Wall Street ended with gains in the overnight trade on Tuesday.
