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Benchmark indices were trading in the green during the afternoon on Wednesday, led by IT stocks.
The market, after opening on a negative note amid weak global cues, turned green. IT stocks gained focus as investors await Infosys results to be announced today.
Indices were dragged by Auto and FMCG stocks, which witnessed profit taking.
At 1 pm, the BSE Sensex was ruling at 52,929.69, up 159.96 points or 0.30 per cent. It recorded an intraday high of 52,943.31 and a low of 52,611.97. The Nifty 50 was ruling near the day’s high of 15,867.75, at 15,862.65, up 50.30 points or 0.32 per cent. It recorded an intraday low of 15,764.20.
Benchmark indices bounce up, Sensex gains 78 points to trade at 52,848
Wipro, Tech Mahindra, HCL Tech, L&T and Infosys were the top gainers on the Nifty 50 while Maruti, Hindustan Unilever, Dr Reddy, Nestle India and Tata Consumer were the top laggards.
Meanwhile, India’s headline inflation rate (provisional) based on WPI (Wholesale Price Index) for June 2021, stood at 12.07 per cent, slightly lower as compared to 12.94 per cent in the month of May 2021.
According to Gaurav Garg, Head of Research, CapitalVia Global Research Ltd, “In early trade, Indian equity benchmarks were flat with a bearish bias.”
The curious case of the bullish stock markets in the pandemic
Rising coronavirus cases and the spread of Delta variant of Covid-19 worried investors. However, investors received some support from the report that the government may extend the programme for investment promotion 2017-20, with the goal of attracting investors and promoting the country’s economic growth, added Garg.
“Bond yields surged and global share prices fell after hitting new highs on Tuesday, as investors worried that the greatest increase in US inflation in 13 years would put an end to a stock market run that has seen values double from 2020 lows. Asian markets were mostly trading in red following the US market cues and rising inflation concern among investors,” added Garg.
Auto, FMCG, Realty and PSU Banks under pressure
On the sectoral front, Auto, FMCG, PSU Bank and Realty stocks were under pressure while IT stocks rallied. Pharma, metals and financials also gained.
Nifty Auto was down 0.34 per cent. Nifty FMCG was down 0.18 per cent while Nifty PSU Bank was down 0.14 per cent. Nifty Realty was down 0.75 per cent.
Meanwhile, Nifty IT rallied 2.55 per cent. Nifty Pharma was up 0.37 per cent while Nifty Metal was up 0.11 per cent. Nifty Bank and Nifty Financial Services were up 0.21 per cent and 0.11 per cent, respectively.
Nifty Midcap, Smallcap up
Broader indices continued to outperform the benchmarks. Nifty Midcap 50 was up 0.21 per cent while Nifty Smallcap 50 was up 0.94 per cent.
The S&P BSE Midcap was up 0.23 per cent while the S&P BSE Smallcap was up 0.44 per cent.
The volatility index rose 1.32 per cent to 12.79.
Zomato IPO: Retail investors pour in
The ₹9,375-crore IPO of food delivery platform Zomato opened for subscription today. The platform on Tuesday raised ₹4,196.51 crore from 186 anchor investors by allotting about 55.22 crore shares.
At 1 pm, Qualified Institutional Buyers (QIBs) subscribed 0.00 times, Non Institutional Investors subscribed 0.06 times, Retail Individual Investors (RIIs) subscribed 1.78 times, Employee Reserved subscribed 0.05 times. It was subscribed 0.34 times in total, as per BSE data.
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