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Market maintained its bullish momentum with benchmark indices trading nearly 1 per cent higher during the afternoon on Wednesday.
Market opened on a positive note amid positive global cues after investor sentiments were boosted by the “populist free” Budget 2022. Indices edged up further during the afternoon, witnessing across the board buying.
At 1 pm, the BSE Sensex was trading at 59,433.81, up 571.24 points or 0.97 per cent. It recorded an intraday high of 59,536.53 and a low of 59,193.05. The Nifty 50 was trading at 17,743.10, up 166.25 points or 0.95 per cent, near the day’s high of 17,768.30. It recorded an intraday low of 17,674.80.
Bajaj Finserv, IndusInd Bank, HDFC Life, Kotak Bank and Bajaj Finance were the top gainers on the Nifty 50 while Tech Mahindra, Shree Cement, Britannia, Nestle India and Sun Pharma were the top laggards.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The bold capex-led growth-oriented Budget augurs well for the market. 8 to 8.5 per cent GDP growth for FY23 is credible and the consequent growth in corporate earnings can be impressive. Capital goods, cement and steel stand to benefit from the big push in capex.”
“A new growth cycle on the back of the massive capex has the potential to crowd-in private investment leading to acceleration in the nascent credit growth. Banks and NBFCs stand to gain from this,” Dr Vijayakumar said.
“Now that the budget is behind us the market is likely to react more to global cues. The correction and the recent rally were, in fact, reactions to global market cues. FIIs sharply trimming their selling to just ₹22 crore helped the Budget rally. But FIIs are likely to sell the rallies again since they consider Indian valuations excessive,” Dr Vijayakumar added.
All in green
On the sectoral front, all indices were in the green with financials, IT, healthcare and consumer durables recording higher gains.
NIfty Private Bank was up 2 per cent. Nifty Bank, Nifty Financial Services and Nifty PSU Bank were up 1.74 per cent, 1.65 per cent and 1.38 per cent, respectively. Nifty Healthcare Index was up 1.03 per cent while Nifty Consumer Durables was up 1.34 per cent.
Broader indices
Broader indices were also in the green. Nifty Midcap 50 was up 1.14 per cent while Nifty Smallcap 50 was up 1.57 per cent. The S&P BSE Midcap was up 1.05 per cent while the S&P BSE Smallcap was up 1.45 per cent. The volatility index softened 6.40 per cent to 18.70.
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