Benchmark indices closed over 2 per cent higher on Wednesday.
Market opened on a positive note despite mixed global cues and soaring oil prices. Indices extended gains through the day amid broad-based buying, tracking gains in heavyweights such as Reliance.
The BSE Sensex closed at 54,647.33, up 1,223.24 points or 2.29 per cent. It recorded an intraday high of 54,893.73 and a low of 53,367.52. The Nifty 50 closed at 16,345.35, up 331.90 points or 2.07 per cent. It recorded an intraday high of 16,418.05 and a low of 15,990.00.
Breadth remains positive
The market breadth remained positive with 2,657 stocks advancing on the BSE against 684 that declined, while 94 remained unchanged. Furthermore, 21 stocks hit the upper circuit as compared to the five that were locked in the lower circuit. Besides, 70 stocks touched a 52-week high and 20 touched a 52-week low.
S Ranganathan, head of research at LKP Securities, said, “D-Street bulls finally held the upper hand today on reports suggesting that the Ukrainian President is no longer pressing for NATO membership.”
“With Covid behind, short-covering coupled with the exit poll results buoyed the bulls as benchmark indices rose almost 3 per cent in late-afternoon trade, with major sectoral indices ending in the green. Domestic investors who have reposed faith in the GOI policies amidst the turmoil and volatility would be keenly watching the impact of rising oil and commodity prices on inflation and corporate earnings,” Ranganathan added.
Vinod Nair, head of research at Geojit Financial Services, said, ”Domestic indices carried forward yesterday’s gains following a clawback in European markets and US futures, as smart investors saw value in the current market valuations.”
“Dip buying is noticed in heavyweights, defensives like IT and pharma, and value buying in private banks. Oil prices continued to rise after the US banned Russian oil imports. The domestic market is also reacting positively to exit polls and in anticipation of in-line state election results. In the near term, the domestic market will trade as per the positive or negative surprise in the state election results and global trend,” added Nair.
Asian Paints, Reliance, Bajaj Finance, IndusInd Bank and M&M were the top gainers on the Nifty 50 while Shree Cement, ONGC, Powergrid, NTPC and Coal India were the top laggards.
On the sectoral front, all indices except Nifty Metal closed in the green.
Nifty Metal was down 0.34 per cent.
Meanwhile, Nifty Realty closed over 3 per cent higher. Nifty Auto was up nearly 3 per cent. Nifty Financial Services closed over 2 per cent higher. Nifty Bank, Nifty PSU Bank, Nifty Private Bank and Nifty Pharma were up nearly 2 per cent each. Nifty Healthcare Index was up 1.55 per cent. Nifty FMCG, Nifty Consumer Durables, Nifty IT and Nifty Oil & Gas each closed over 1 per cent higher.
Broader indices
Broader market gained as broader indices also closed higher.
Nifty Midcap 50 was up 2.24 per cent while Nifty Smallcap 50 was up 2.37 per cent. The S&P BSE Midcap was up 2.37 per cent while the S&P BSE Smallcap was up 2.16 per cent.
The volatility index softened 3.91 per cent to 27.47.