Rising for the third straight session, the domestic equity market on Wednesday ended the day on a positive note on robust fag-end buying in banking and financial stocks amid a bearish trend in global equity markets. The BSE Sensex gained 123.63 points to settle at 60,348.09, while the NSE Nifty rose 42.95 points to 17,754.40. The rupee, however, weakened by 13 paise to close at 82.05 (provisional) against US dollar.
Of the 30 shares on the Sensex, 17 companies ended the day in the green, while the remaining 13 were recorded loss. The Sensex had lost over 300 in the early trade in the morning, However, later, it recovered to the green territory with a gain of 123.63 points. The BSE benchmark saw the day’s low of 59,844.82 and the day’s high of 60,402.85.
Most Asian markets, including Hang Seng and MSCI AC Asia Pacific, witnessed a decline. Equity exchanges in Europe were trading with losses in the afternoon session. The US markets had ended significantly lower in the overnight session.
Besides, covering-up of short positions by bears supported the late recovery in stocks, helped wipe off losses, according to traders. However, a weak rupee against major rivals overseas weighed on market sentiment and restricted gains, they added.
On the Sensex, IndusInd Bank was the biggest gainer rising 4.75 per cent, followed by M&M, L&T, NTPC, ITC, Ultra Cement, Tata Steel, Maruti and SBI.
In contrast, Bajaj Finance, Tech Mahindra, Infosys and Sun Pharma were among the top losers, falling up to 2.30 per cent.
Vinod Nair, head of (research) at Geojit Financial Services, said, “The global market has fallen back into the grip of uncertainty as the US Fed chief signalled the possibility of a prolonged and faster rate hike, contradicting a dovish comment made by another Fed official last week.”
He added that the market now anticipates a 50 bps rate hike, which has pushed the dollar index to a three-month high. However, a strong recovery was seen in the domestic market towards the end of the day, which kept the bulls on the move.
International oil benchmark Brent crude was trading 0.16 per cent lower at $83.16 per barrel. Foreign Institutional Investors (FIIs) were net buyers in capital markets as they bought shares worth Rs 721.37 crore on Monday, according to exchange data.
The rupee on Wednesday fell 13 paise to close at 82.05 (provisional) against US dollar.
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