Domestic equity markets staged a smart recovery on Wednesday, thanks to buying in select heavyweight sectors. The fag-end buying in metals, pharma, autos and cosumer stocks gave the bulls an upper hand over the bears. Positive global cues supported the market sentiments.
For the day, the 30-share pack BSE Sensex gained 149.31 points, or 0.23 per cent, to end the day at 65,995.81, while NSE's Nifty50 added 61.70 points, or 0.32 per cent, to settle at 19,632.55. BSE midcap and smallcap indices added about half-per-cent each. Fear gauge India VIX dropped about two per cent to 11.14-level.
Markets staged a smart recovery in the late trading session after 2 days of weakness, as strength in European indices and sharp gains in metals, oil & gas and auto stock aided sentiment. Markets were highly volatile after Moody's warned of downgrading six major US banks, while weak Chinese exports data also dampened sentiment, said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
"Technically, after an early morning sell off the index took support near 19470 and recovered sharply. A promising reversal formation and a higher bottom formation on intraday charts is suggesting further uptrend from the current levels. For traders, 19,550 would be the trend decider level, above which the index could move up till 19,700-19,735. On the flip side, below 19,550, the uptrend would be vulnerable and below the same the market could slip till 19,470-19,440," he said.
On the sectoral front, the Nifty media and metal indices led the leaders, rising 2 per cent each. The Nifty oil & gas, auto, consumer durables, pharma and FMCG indices added about a per cent each. Among the losers, the Nifty realty index dropped over a per cent, while the Nifty bank and financial services were among the other laggards.
Indian bourses have witnessed a complete reversal in today's trade as Nifty50 started the day on a tepid note and banking counters put pressure on the Index to trade further lower. In the second half of the trading session, the turnaround was seen on the index, which recovered all its losses and settled with gains, said Aditya Gaggar, Director of Progressive Shares.
In the Nifty50 pack, Dr Reddy Labs topped the gainers and surged 4 per cent for the day. JSW Steel, Hindalco and Tata Motors rose 3 per cent each. Mahindra & Mahindra, ONGC, Coal India, Tata Steel, UPL, Tata Consumer Products and Tech Mahindra added 2 per cent each for the day.
Among the losers, Divis Laboratories plunged 3 per cent, while Apollo Hospital Enterprises, Maruti Suzuki India, Bajaj Finance, and Asian Paints ended a per cent down each. Hindustan Unilever, Bharti Airtel, Cipla, Power Grid and Axis Bank were among the key laggards on the index.
The domestic market started adopting a defensive stance as investors awaited crucial inflation data for both India and the US. The deflationary trend in China and downgrade of the US mid- and small-sized banks affected the market sentiment, said Vinod Nair, Head of Research at Geojit Financial Services.
"However, a late recovery in the domestic market was supported by a positive uptick in the European market and hope of an optimistic RBI policy not impacting domestic economic growth," he said.
A total of 3,743 shares were traded on BSE on Wednesday, of which 2,027 settled with gains. 1,557 stocks ended the session with cuts while 159 shares remained unchanged. A total of 268 shares hit their upper circuit, whereas 195 shares tested the lower circuit levels for the day.
In a mid-week session, the Indian market traded flat today following the data released from China and fueled deflation concerns among investors. Traders may likely trim their positions ahead of RBI’s monetary policy decision this week, said Shrey Jain, Founder and CEO at SAS Online, a discount broker.
In the broader markets, Tasty Bite Eatables and Rattanindia Enterprises hit an upper circuit of 20 per each after a robust Q1 performance, while Hindustan Construction Company was just shy of this mark. Sangam India rose 14 per cent, while Repco Home Finance settled 12 per cent higher.
Among the losers, Dreamfolks Services tanked about 15 per cent after the company disappointed in the June 2023 quarter. Muthoot Capital Services plunged 14 per cent, while TajGVK Hotels & Resorts gained 9 per cent. Mishra Dhatu Nigam plunged 7 per cent for the day.
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