MUMBAI: Equity benchmark indices Sensex and Nifty closed higher for the third consecutive session on Wednesday, supported by buying in blue-chip banking stocks and renewed foreign fund inflows.
A sharp drop in retail inflation to a near six-year low buoyed hopes of further rate cuts, lifting market sentiment.
Defying weak global cues, the 30-share BSE Sensex rose 309.40 points or 0.40 per cent to end at a two-week high of 77,044.29 in a volatile session. The index swung 566.46 points during the day, hitting an intraday high of 77,110.23 and a low of 76,543.77.
The NSE Nifty advanced 108.65 points or 0.47 per cent to close at 23,437.20.
Among the Sensex constituents, IndusInd Bank led the gainers with a jump of 7.12 per cent. Other major gainers included Axis Bank, Adani Ports, Asian Paints, Bharti Airtel, State Bank of India and ITC. On the other hand, Maruti, Infosys, Tata Motors, Larsen & Toubro, NTPC and Bajaj Finance declined.
FIIs net buyers
Foreign Institutional Investors (FIIs) turned net buyers after several sessions of selling, purchasing equities worth Rs6,065.78 crore on Tuesday, according to exchange data.
“Globally, markets are undergoing fresh consolidation as tariff tensions intensify. Amidst global weakness, the Indian market exhibited a mildly positive sentiment on expectations that the trade tussle between the US and China may benefit India. Moreover, the decline in March CPI inflation to nearly a six-year low indicates scope for further rate cuts,” said Vinod Nair, Head of Research at Geojit Financial Services.
Domestically, the March quarter earnings season has had a subdued start. Overall expectations remain muted, raising the likelihood of profit booking at higher levels, Nair added.
In Asia, South Korea’s Kospi, Tokyo’s Nikkei 225 and Hong Kong’s Hang Seng ended lower, while Shanghai’s SSE Composite closed in the green. European markets were trading in the red. Wall Street had ended lower on Tuesday.
Meanwhile, global oil benchmark Brent crude rose 0.91 per cent to $65.22 a barrel.
On Tuesday, the Sensex had surged 1,577.63 points or 2.10 per cent to end at 76,734.89, while the Nifty had rallied 500 points or 2.19 per cent to 23,328.55.
