Due to significant buying in the indexes on Tuesday, Indian markets partially recovered their prior losses. The result was improved by active buying in large-cap banking companies and a strong increase in heavyweights, particularly RIL. The Sensex once again reached the crucial level of 58,000, and the Nifty 50 once more crossed 17,100. Market focus is now on the US Federal Reserve’s policy announcement later this week.
At 58,074.68 the Sensex closed 445.73 points or 0.77% higher. The Nifty 50 increased 119.10 points or 0.7% to settle at 17,107.50.
Vinod Nair, Head of Research at Geojit Financial Services, commented on the market performance, stating that “ahead of the US Fed policy statement on Wednesday, global markets showed rebound, bolstered by multiple initiatives to rescue the banking system.” The energy was gone. In domestic equities, large-cap banks are in the lead. The advances by IT stocks were however constrained by caution regarding reduced transaction wins from the BFSI category in western countries.
Apart for modest selling in IT, real estate, and FMCG sectors, there was widespread purchasing across all sectoral indices. The best-performing industries were banking and consumer goods.
The Bank Nifty increased by 533 points, or 1.4%. The BSE Bankex increased 582 points, or 1.3%. Consumer durables increased by almost 588 points, capital goods by over 308 points, and financial services by 1.4%, among other sectoral indexes, on the BSE.
The highest gainer was industry heavyweight Reliance Industries (RIL), up over 3%, followed by Bajaj Finance, up 2.9%. Axis Bank, Titan, IndusInd Bank, ICICI Bank, Bajaj Finserv, and UltraTech Cements were among the stocks that had gains of 1.5-2.2%.
On the Sensex, Power Grid was the biggest loss, down 2%, followed by Hindustan Unilever, which fell 1.9%, Tech Mahindra, which fell 1.2%, and TCS, which fell 1.1%.
The rupee lost value versus the US dollar on the interbank foreign exchange market, following an increase in the price of crude oil and persistent outflows of foreign funds in spite of rising local stock prices. Nonetheless, the rupee’s deterioration was quite slight. In comparison to the previous print of 82.6350 per dollar, the local unit closed at 82.6550.
I’ll go ahead. According to Rohan Shah, Principal Technical Analyst at Stocksbox, “Nifty is still rangebound today. If it holds for a period of 15 minutes, intraday traders can now search for long possibilities above the 17,150 resistance mark. New shorts can be sold by traders. To ensure future lows, the Nifty must breach the 17,000 mark and remain below it for 15 minutes before looking.
According to Mitul Shah, head of research at Reliance Securities, markets will closely track alterations in the US and European financial systems as well as general indications from around the world. The CPI and WPI have decreased domestically, while the trade imbalance has shrunk. Since the onset of the US banking crisis, Brent crude prices have fallen 10%, which, along with cheaper Russian crude and a decline in natural gas and coal prices, represents a significant headwind for the Indian economy.
Shah, however, drew attention to the fact that severe crop damage has been brought on by ad hoc nocturnal rainfall over most of India. Food costs would probably rise as a result in the following months. Tomorrow’s monetary policy meeting and interest rate decision by the US Fed will be closely watched.
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