Markets extend winning run to 4th day; finance, energy stocks shine
"Despite the pervasive negative sentiment of a slowdown, the on ground demand reports suggest things are not as bad, and improving. The demand is not as bad if sales numbers in early festive season are to be believed. With all the negatives already known, the downside to markets looks limited," said Sunil Sharma
MUMBAI: Benchmark indices closed with gains for the fourth session on the trot on Wednesday, propped up by finance, energy and IT stocks, as investors wagered on an upbeat earnings season amid mixed global cues.
After swinging 250 points in see-saw trade, the 30-share BSE Sensex ended 92.90 points, or 0.24 per cent, higher at 38,598.99.
On similar lines, the broader NSE Nifty rose 35.70 points, or 0.31 per cent, to settle at 11,464.
A batch of strong earnings from companies like Wipro and ACC enthused trading sentiment, though the overall macroeconomic picture remains sombre, brokers said.
Top gainers in the Sensex pack included Bajaj Finance, ONGC, Yes Bank, HDFC, HCL Tech, Tech Mahindra, TCS, ICICI Bank and RIL, rising up to 3.57 per cent.
On the other hand, Hero MotoCorp, Vedanta, Asian Paints, NTPC, ITC, PowerGrid, SBI and Tata Motors fell up to 2.73 per cent.
"Though global markets remained flat, Indian markets rallied for the fourth straight day. The beginning of earnings season has been better than anticipated. In addition, the rosier outlook in management commentaries is adding to the optimism.
"Despite the pervasive negative sentiment of a slowdown, the on ground demand reports suggest things are not as bad, and improving. The demand is not as bad if sales numbers in early festive season are to be believed. With all the negatives already known, the downside to markets looks limited," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
Sectorally, BSE oil and gas, realty, energy, teck, IT, telecom, finance and healthcare indices ended up to 1.20 per cent higher.
However, power, utilities, metal, capital goods and auto slipped up to 1.06 per cent.
Broader BSE midcap index dipped 0.14 per cent, while the smallcap gauge rose 0.21 per cent.
Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo ended on a positive note, while Shanghai settled in the red.
Exchanges in Europe were also trading lower in their respective early sessions on reports that Tuesday's talks brought British and European negotiators closer to a Brexit deal but failed to confirm an elusive breakthrough.
Meanwhile, the Indian rupee appreciated 17 paise to 71.37 against the US dollar intra-day.
Brent crude futures, the global oil benchmark, fell 0.17 per cent to USD 58.64 per barrel.