The two key equity benchmarks, Sensex and Nifty, on Wednesday closed higher for the third straight trading session led by gains in index heavyweight Reliance Industries, FMCG and metal stocks. After paring the losses, the S&P BSE Sensex recovered from the day’s low of 63,014, to hit a high of 63,274. It finally settled 85 points higher at 63,229. On the other hand, the NSE Nifty 50 ended with a gain of 40 points at 18,756.
On the 30-share Sensex platform, Tata Steel, Tata Motors, PowerGrids, Reliance, UltraCemco, NTPC were among the lead gainers. On the flipside, Bajaj Finance, IndusInd Bank, Axis Bank, Airtel, Bajaj Finserv, ICICI Bank emerged losers.
In the broader markets, the BSE Midcap index added 0.2 per cent and Smallcap index gained 0.4 per cent.
Sectorally, except bank and Information Technology, all other sectoral indices ended in the green, with metal, FMCG, oil & gas and power indices up 0.5-1 per cent.
"The domestic indices rebounded after an initial phase of profit booking, driven by encouraging WPI inflation data and positive global cues, while selling in IT and banking stocks kept a check on gains. The favourable decline in US inflation, driven by lower energy prices, and speculation about a potential pause in the Fed rate hike campaign, brought comfort to global equities. However, the persistence of higher core inflation levels may compel the Fed to maintain its hawkish tone during today’s policy announcement with indication of a prolonged pause." Vinod Nair, Head of Research at Geojit Financial Services said in a note.
In the previous session on Tuesday, the BSE Sensex settled with a gain of 418 points at 63,143, while the NSE Nifty 50 hit a high of 18,729, and settled 115 points higher at 18,716.
"The domestic indices rebounded after an initial phase of profit booking, driven by encouraging WPI inflation data and positive global cues, while selling in IT and banking stocks kept a check on gains. The favourable decline in US inflation, driven by lower energy prices, and speculation about a potential pause in the Fed rate hike campaign, brought comfort to global equities. However, the persistence of higher core inflation levels may compel the Fed to maintain its hawkish tone during today’s policy announcement with an indication of a prolonged pause," Vinod Nair, Head of Research at Geojit Financial Services.
In Asian markets, Seoul, Shanghai, and Hong Kong ended lower, while Tokyo settled in the green. Equity markets in Europe were trading with gains. The US markets ended in positive territory on Tuesday.
Global oil benchmark Brent crude climbed 1.08 per cent to $75.09 a barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,677.60 crore on Tuesday, according to exchange data.
Meanwhile, the rupee gained 15 paise to settle at 82.10 (provisional) against the US dollar on Wednesday, helped by robust macro fundamentals, FII inflows and a weak greenback against major rivals overseas.
At the interbank foreign exchange market, the local unit opened at 82.28 against the US dollar and settled at 82.10 (provisional), up 15 paise over its previous close amid a positive trend in domestic equities.
During the day, the domestic unit witnessed an intra-day high of 82.08 and a low of 82.32. On Tuesday, the rupee closed at 82.25 against the US currency.