Indian equities regain footing; metal, banking stocks lead
Indian equity benchmarks Sensex and Nifty on Wednesday recovered from the massive losses logged in the previous session after investors lapped up metal and banking counters, tracking positive global sentiment.
Mumbai: Indian equity benchmarks Sensex and Nifty on Wednesday recovered from the massive losses logged in the previous session after investors lapped up metal and banking counters, tracking positive global sentiment.
Indian stocks showed some resilience while overcoming volatility as investors brushed aside deep concerns over the country's economic health and instead looked to positive global factors for further cues.
After swinging 367 points in a highly volatile session, the 30-share index ended 161.83 points, or 0.44 per cent, higher at 36,724.74. It hit an intra-day high of 36,776.31 and low of 36,409.54.
The broader Nifty -- after opening on a flat note in the morning -- traded in the range of 10,858.75 and 10,746.35 during the session. It finally ended the day with 46.75 points, or 0.43 per cent, gains at 10,844.65.
The Sensex rise was driven by metal, banking, telecom and IT stocks amid some positive news coming from Hong Kong.
Globally, market sentiment was boosted after Hong Kong's embattled leader Carrie Lam fully withdrew a controversial bill that allowed extradition to mainland China and sparked three months of protests.
Of the 30 Sensex constituents, 18 stocks closed in the green and 12 in the red.
Top gainers on the Sensex were: Bharti Airtel, SBI, Tata Steel, Vedanta, NTPC, HDFC Bank, HCL Tech, ONGC, ICICI Bank and L&T -- rising up to 2.97 per cent.
On the other hand, Maruti was the biggest laggard, plunging 3.64 per cent after the company announced a two-day suspension of its manufacturing operations at its Gurugram and Manesar plants in Haryana.
Other major losers were Sun Pharma, Tata Motors, Asian Paints, IndusInd Bank, M&M, Bajaj Auto and RIL -- falling as much as 2.97 per cent.
On Tuesday, the BSE Sensex dropped 770 points and the NSE Nifty dived over 225 points after investors indulged in panick selloffs amid sustained worries over the country's economic health.
The benchmark indices also saw their biggest intra-day plunge in nearly 11 months.
"Investors in Asia got good news this morning with positive developments in Hong Kong. This helps alleviate tensions in one of the key financial capitals of the world. After a steep fall yesterday, Indian markets held long-term support, driven by improved global sentiments.
Banks and Infra stocks were the biggest gainers while autos and pharma sectors were the bottom performers for the day," said Sunil Sharma, chief investment officer, Sanctum Wealth Management.
Though, he said, growth concerns continue to cast a shadow on global as well as domestic economy, the developments towards global political stability are a positive.
Based on positive developments in Hong Kong, Hang Seng rallied 3.90 per cent.
Shanghai Composite Index, Nikkei and Kospi too ended up to 1.16 per cent higher.
Exchanges in Europe were also trading with significant gains in their respective early sessions.
Meanwhile, the Indian rupee appreciated by 27 paise to close at 72.12 per US dollar on Wednesday.
Global oil benchmark Brent crude rose 0.39 per cent to 58.48 per barrel (intra-day).
In a major concern for the domestic stock market, foreign investors continued with their equity selling spree by pulling out Rs 2,016.20 crore on Tuesday.
Foreign portfolio investors (FPIs) withdrew a net Rs 17,592.28 crore from equities in August.