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Market closed on a high note on Wednesday as IT stocks rebounded sharply. A declining trend in Covid-19 cases in the country lifted investor sentiments.
The BSE Sensex breached the 51,000-mark and closed near the day’s high of 51,072.61 at 51,017.52, up 379.99 points or 0.75 per cent. It hit an intraday low of 50,620.45. Similarly, the Nifty 50 index closed at 15,301.45, up 93.00 points or 0.61 per cent. During the day, it touched a high of 15,319.90 and a low of 15,194.95.
The breadth of the market remained positive with 1,950 stocks advancing, 1,185 declining and 146 remaining unchanged on the BSE. As many as 498 securities hit the upper circuit and 166 the lower circuit; 374 hit their 52-week high while 32 touched a 52-week low.
Binod Modi, Head Strategy at Reliance Securities, said, “Domestic equities remained upbeat as improved visibility about economic recovery from Q2FY22 continued to lift investors’ sentiments.”
“A sharp drop in daily caseload in second wave (remaining below 2 lakh for two days) and improvement in recovery rates have emboldened investors in last one week. Further, robust Q4FY21 earnings and favourable commentaries from managements also aided to lift sentiments,” added Modi.
Reports of a Government stimulus package further impacted market sentiments.
Bajaj Finserv, Bajaj Finance, Infosys, Grasim and Wipro were the top gainers on the Nifty 50 while PowerGrid, Hindalco, JSW Steel, Tata Steel and NTPC were the top laggards.
Vinod Nair, Head of Research at Geojit Financial Services, said, "Domestic markets started cautiously positive and witnessed a strong rebound as it gained momentum from expectations of another set of relief measures.”
IT stocks rebound, Metals, PSU under pressure
On the sectoral front. IT stocks rebounded sharply even as metals and PSU stocks remained under pressure.
Nifty IT was up 1.76 per cent. Realty stocks also rallied through the day as Nifty Realty closed 2.84 per cent higher.
Meanwhile, Nifty Metal and Nifty PSU Bank were down 1.86 per cent and 0.26 per cent, respectively. Nifty Private Bank closed flat.
“IT stocks witnessed sharp rebound today after positive commentary of select managements about strong execution delivery despite the second wave of the pandemic,” said Modi.
“Value buying was seen in the IT sector while metal stocks remained in the correction phase due to muted international commodity prices," said Nair.
Mid & Small-Cap underperform
Broader indices underperformed today as compared to the benchmarks.
Nifty Midcap 50 was down 0.11 per cent at closing while Nifty Smallcap 50 was up 0.46 per cent. The S&P BSE Midcap was down 0.14 per cent while the S&P BSE Smallcap was up 0.69 per cent.
However, the volatility index rose 10.77 per cent in the second half to close at 20.87.
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