Benchmark indices rebounded sharply, closing nearly 2 per cent higher on Wednesday.

The Indian equity market started off on a positive note as global markets edged up amid softening crude prices. Indices extended gains during the day amid broad-based buying.

The BSE Sensex closed at 56,816.65, up 1039.80 points or 1.86 per cent, near the day’s high of 56,860.89. It recorded an intraday low of 56,389.26. The Nifty 50 closed at 16,975.35, up 312.35 points or 1.87 per cent, near the day’s high of 16,987.90. It recorded an intraday low of 16,837.85.

Breadth turns positive

The market breadth was positive with 2,306 stocks advancing on the BSE as against 1,128 that declined while 100 remained unchanged. Furthermore, 18 stocks hit the upper circuit as compared to the 7 stocks that were locked in the lower circuit. Besides, 112 stocks touched a 52-week high level and 23 touched a 52-week low.

The volatility index softened 9.77 per cent to 24.12.

Ultratech Cement, Axis Bank, Bajaj Auto, IndusInd Bank and Shree Cement were the top gainers on the Nifty 50. Only three scrips- Cipla, Sun Pharma and Tata Consumer closed in the red.

According  to Santosh Meena, Head of Research, Swastika Investmart Ltd, today’s rally can be attributed to an overnight rally in the US market and a sharp fall in crude oil prices. 

A surge in covid cases and lockdown in China is also putting pressure on prices of crude oil.  

“The fall in prices of crude oil is a major tailwind for the Indian equity markets whereas FIIs’ selling has also come down significantly. Global markets have also digested the expected rate hike of 25 basis points by the US Fed however some volatility is expected after the FOMC meeting outcome overnight today,” said Meena.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, “Market seems to have come off from the turbulent phase of the last few weeks. While the conflict between Russia and Ukraine continues, other events such as cooling oil prices and US Federal Reserve’s decision on the rate front and commentary about the pace of future rate hikes are being eyed by the investors. The trend reversal in recent sessions is also due to the market being in an oversold territory in the past few weeks.”

All in green

All sectoral indices closed in the green.

Nifty Realty closed 3.6 per cent higher while Nifty Metal was up 2.6 per cent. Nifty Bank, Nifty Private Bank, Nifty Auto, Nifty Consumer Durables and Nifty Oil & Gas were each up over 2 per cent. Nifty Financial Services, Nifty FMCG and Nifty IT were each up nearly 2 per cent. 

Broader indices

Broader indices also closed in the green.

Nifty Midcap 50 was up 2.03 per cent while Nifty Smallcap 50 was up 1.39 per cent. The S&P BSE Midcap was up 1.80 per cent while the S&P BSE Smallcap was up 1.47 per cent.

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