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Benchmark indices rebounded sharply, recording fresh highs on Wednesday, despite weak global cues.
The market opened on a positive note, supported by foreign capital inflows. Indices gained further in the second half, ahead of the Union Cabinet meeting, witnessing all around buying. IT, PSU Bank, telecom and power stocks gained focus through the day.
The BSE Sensex, after recording a fresh all-time high of 58,777.06 closed at 58,723.20, up 476.11 points or 0.82 per cent. It recorded an intra-day low of 58,272.82. The Nifty 50 closed at a record high of 17,519.45, up 139.45 points or 0.8 per cent. It recorded a fresh all-time high of 17,532.70 and a day’s low of 17,386.90.
Breadth remains positive
The breadth of the market remained buoyant with as many as 2,055 stocks advancing on the BSE, compared to 1,246 stocks that were declined while 120 remained unchanged. Furthermore, 416 stocks hit the upper circuit compared to the 181 stocks locked in the lower circuit. Besides, 265: stocks touched a 52-week high level, and 16 touched a 52-week low.
Binod Modi, Head Strategy at Reliance Securities, said, “Domestic equities witnessed sharp rebound today with benchmark indices Nifty and Sensex recording fresh all-time highs despite weak global cues. Notably, a sharp rebound in IT, financials, especially PSU banks, auto and metals aided a strong rally and added over ₹2 lakh crore in investors’ wealth. Barring Nifty Media, all sectoral indices traded in green today.”
‘Telecom stocks were in focus today as relief measures for telecom sector from government-aided sentiments,” added Modi.
NTPC, Bharti Airtel, Coal India, ONGC and Titan were the top gainers on the Nifty 50 while Tata Consumer, Nestle India, Grasim, BPCL and Asian Paints were the top laggards.
Vinod Nair, Head of Research at Geojit Financial Services, said, "The Indian market continued to add investor wealth as the broad market traded to record highs. Auto and telecom were the key sectors in anticipation of reforms to be announced by the government in the cabinet meeting.”
“Cabinet cleared ₹26,000 crore PLI (productivity linked incentive) scheme for the auto sector in order to boost production of electric vehicles and hydrogen fuel vehicles. Reports of approval of a relief package for the telecom sector including a likely moratorium of AGR payment will provide relief to the debt-laden sector. On the global front, the much-awaited US inflation data indicated a slower than expected rise in prices, which is positive for the global market because of the likely fall in tapering risk," said Nair.
Green all around
On the sectoral front, all indices except Nifty media closed in the green. PSU Bank stocks led the rally. IT, auto, consumer durables, metals and Oil & Gas stocks also gained higher.
Nifty PSU Bank closed 2.83 per cent higher. Nifty IT was up 1.82 per cent. Nifty Auto was up 0.86 per cent while Nifty Metal was up 0.84 per cent. Nifty Consumer Durables was up 0.99 per cent while Nifty Oil & Gas was up 0.85 per cent.
Broader markets strong
Mid-caps and small-caps continued to witness strong buying.
Nifty Midcap 50 was up 1.33 per cent at closing while the Nifty Smallcap 50 was up 0.51 per cent. The S&P BSE Midcap was up 0.65 per cent while the S&P BSE Smallcap was up 0.86 per cent.
The volatility index was rose 1.14 per cent to 13.73.
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