Sensex surges over 500 points, Nifty trades above 19,600; Manappuram Finance, Narayana Hrudayalaya jump up to 7%

Indian equity benchmarks traded higher in Wednesday's early trade, led by gains across all sectors. The 30-share BSE Sensex pack soared 535 points or 0.82 per cent to trade at 65,469, while the NSE Nifty moved 170 points or 0.88 per cent up to trade at 19,614. Broader market (mid- and small-cap) shares were positive as Nifty Midcap 100 climbed 0.75 per cent and small-cap gained 1.04 per cent.

The uptrend in domestic indices came tracking a jump in world stocks after softer-than-expected US inflation data fuelled hopes of an end to the rate-hiking cycle in the world's largest economy.

Back home, foreign institutional investors (FIIs) continued to offload Indian equities in November. FIIs sold shares worth Rs 1,244 crore ($149.89 million) during the previous session on Monday, extending their selling streak to the 15th session. Domestic institutional investors (DIIs) extended their buying streak for the 19th session in a row, adding a net Rs 830 crore worth of shares.

All the 15 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank, Nifty IT and Nifty Metal were outperforming the NSE platform by rising as much as 1.03 per cent, 1.63 per cent and 1.50 per cent, respectively.

On the stock-specific front, Hindalco Ltd was the top gainer in the Nifty pack as the stock jumped 4.72 per cent to trade at Rs 510.5. LTI Mindtree, Infosys, IndusInd Bank and ONGC gained up to 2.09 per cent.

In contrast, Power Grid, Asian Paints, Sun Pharma, Maruti and Britannia were among the top laggards.

The overall market breadth was positive as 2,064 shares were advancing while 411 were declining on BSE.

On the 30-share BSE index, index heavyweights such as HDFC Bank Ltd, Bajaj Finance, Infosys, SBI, Reliance Industries and Tata Consultancy Services (TCS) were among the top gainers.

Also, Manappuram Finance, Narayana Hrudayalaya, The Phoenix Mills and Yes Bank surged up to 7.19 per cent. On the flipside, Rajesh Exports, La Opala RG, Marksans Pharma and Vijaya Diagnostic Centre slipped up to 6.08 per cent.

Nifty outlook

"Despite a down close, Monday saw a finish above the VWAP, for the first time in last five days. This encourages us to be more confident about the 19,840 trajectory which we have been playing since last week. In anticipation of the same, we had pushed the downside marker higher to 19,433/19,370 as well, which may remain the turnaround points until 19,840 is cleared," said Anand James, Chief Market Strategist at Geojit Financial Services.

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