The Sensex benchmark witnessed a significant recovery on Wednesday, bouncing back from early declines to close with a gain of 173 points. This resurgence was driven by increased buying activity in prominent companies such as Reliance Industries, Larsen and Toubro, and ITC, as well as positive trends observed in Asian and European markets.
The 30-share BSE Sensex showed an increase of 173.22 points or 0.26%, eventually settling at 66,118.69. Among its components, 20 stocks ended in the green while 10 concluded lower.
Initially, the index opened on a lower note, reaching a low of 65,549.96 during morning trading. However, the renewed buying interest in companies like Reliance, L&T, Infosys, and Maruti helped it recover from these early losses. Ultimately, it surged by 226.8 points or 0.34% to reach a high of 66,172.27.
Similarly, the Nifty index gained 51.75 points or 0.26%, closing at 19,716.45. Throughout the day, it fluctuated between a low of 19,554 and a high of 19,730.70.
Among the companies listed in the Sensex, Larsen and Toubro, ITC, Sun Pharma, Maruti, Reliance Industries, Axis Bank, IndusInd Bank, and Hindustan Unilever were among the gainers. In contrast, Titan, State Bank of India, ICICI Bank, HDFC Bank, Tata Steel, and Nestle were the major decliners.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “The market inched higher in the second half, driven by positive openings in European markets. Concerns about global interest rates and elevated oil prices are being balanced by several domestic factors, such as promising economic growth prospects and the potential for strong earnings, which validate the premium valuation.”
He also pointed out that continual foreign fund outflows and the upward trend in US bond yields are expected to restrain the overall market indices in the short term.
Ajit Mishra, SVP – Technical Research at Religare Broking Ltd, highlighted the market’s volatility but pointed out that it ended on a positive note thanks to a rebound in select heavyweight stocks, particularly Reliance and ITC. He also mentioned that the scheduled monthly expiry of derivative contracts could contribute to ongoing volatility.
In the broader market, the BSE midcap index advanced by 0.76%, and the smallcap index saw a 0.68% increase. Among the sectoral indices, capital goods rose by 1.14%, healthcare by 1.13%, industrials by 0.97%, FMCG by 0.77%, real estate by 0.70%, IT by 0.48%, and technology by 0.43%. However, Bankex, consumer durables, and oil and gas were the underperformers.
On the global front, Asian markets in Seoul, Tokyo, Shanghai, and Hong Kong closed with gains, while European markets mostly traded in positive territory. Meanwhile, the US markets ended lower on the preceding Tuesday.
The global oil benchmark, Brent crude, saw an increase of 0.98%, reaching USD 94.88 per barrel. Foreign Institutional Investors (FIIs) divested equities worth Rs 693.47 crore on the previous Tuesday, according to exchange data.