Mumbai, October 11 (PTI) – The benchmark Sensex surged by 393 points, with the Nifty closing above the 19,800 mark on Wednesday. This gain was primarily attributed to buying in energy, FMCG, and capital goods shares. These positive moves came amidst mixed global cues and waning concerns about inflation.
In its second consecutive session of gains, the 30-share Sensex saw an impressive rise of 393.69 points or 0.6 percent, concluding at 66,473.05. Out of its 30 components, 24 ended in the green, while six saw declines.
The broader Nifty on the NSE also saw an upswing, advancing by 121.50 points or 0.62 percent, reaching a closing figure of 19,811.35. Among the index shares, 37 showed gains, 12 saw declines, and one remained unchanged.
Notable sectors showing buying activity included FMCG, energy, metal, pharma, and private banks. However, most IT shares experienced a decline as investors awaited the announcement of quarterly financial results.
“Nifty has rallied over the past couple of days as concerns regarding geopolitical issues were absorbed by the market. For the week, Nifty gained 1.5 percent, driven by frontline stocks like Reliance and HDFC. Support for the market also stemmed from comments made by Fed officials, indicating a lower probability of a rate hike going forward,” said Jaykrishna Gandhi, Head of Business Development, Institutional Equities at Emkay Global Financial Services.
Among Sensex stocks, Wipro showed the most significant gain, rising by 3.29 percent. Other gainers included Ultratech Cement, Reliance Industries, Hindustan Unilever, Nestle, NTPC, M&M, HDFC Bank, ITC, Kotak Bank, and Axis Bank. On the downside, HCL Tech recorded the most significant drop, falling by 1.24 percent, with SBI, TCS, Infosys, IndusInd Bank, and Tata Steel also declining.
Tata Consultancy Services (TCS) reported an 8.7 percent year-on-year increase in net profit, reaching Rs 11,342 crore in the September 2023 quarter.
“The overall market breadth was strong, as investors believed that the Middle East conflict would likely remain contained within the region and should not significantly impact crude oil prices,” commented Vinod Nair, Head of Research at Geojit Financial Services.
Against a backdrop of dovish statements from the US Federal Reserve, the US 10-year bond yield traded lower.
“Sequentially, September’s Indian Consumer Price Index (CPI) is expected to cool down due to a decrease in food and fuel inflation. The Q2 earnings season is set to begin with the IT sector, which holds moderate expectations. However, broader corporate entities are expected to deliver robust results,” Nair added.
In the broader market, the BSE Midcap rose by 0.55 percent, while the SmallCap segment advanced by 0.77 percent.
The market breadth appeared positive, with 2,353 stocks closing with gains, 1,334 scrips ending in the red, and 135 remaining unchanged on BSE.
Global equity markets exhibited mixed trends following gains on Wall Street, partly attributed to reduced pressure from the bond market.
In Asia, the Hang Seng in Hong Kong surged by 1.4 percent, South Korea’s Kospi jumped by 2 percent, and Tokyo’s Nikkei 225 index climbed by 0.6 percent. The Shanghai Composite index experienced a marginal 0.1 percent decrease.
In Europe, stock markets were mostly trading flat.
Foreign Institutional Investors (FIIs) continued to be net sellers, offloading shares worth Rs 421.77 crore on Wednesday, according to data available with BSE.
“In the near term, the market, despite geopolitical concerns, appears to be on a strong footing. We believe that frontline stocks like Reliance, HDFC Bank, and FMCG names could drive the Nifty higher. The IT sector is expected to continue with weak earnings, but much will depend on the 2H commentary regarding global tech spending, which could reignite interest in IT,” Gandhi noted.