Sensex surges over 100 points; Nifty tops 17,500
(Sourced from PTI)
Equity benchmark Sensex rose over 100 points in opening trade on Wednesday, tracking gains in IT stocks amid sustained foreign fund inflow. The 30-share Sensex, however, turned choppy to trade 36.75 points or 0.06 percent lower at 58,968.52. Similarly, Nifty slipped 10.45 points or 0.06 percent to 17,551.55 in initial deals. Here are more details.
HDFC was the top loser in the Sensex pack, shedding over one percent, followed by Axis Bank, Tata Steel, Nestle India, HDFC Bank, and HUL. On the other hand, Tech Mahindra, NTPC, M&M, Titan, and HCL Tech were among the gainers.
In the previous session, the 30-share index ended 514.34 points or 0.88 percent higher at 59,005.27, while Nifty surged 165.10 points or 0.95 percent to 17,562. Foreign Institutional Investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs. 1,041.92 crore on Tuesday, as per provisional exchange data.
"Domestic equities look to be soft as of now," Binod Modi Head-Strategy at Reliance Securities, said. "Notably, yesterday's recovery in equities and strong inflow from DIIs and FIIs shows that markets have discounted possible fallout from the likely default of Chinese real estate giant Evergrande, while Thursday would be crucial as $83 million interest payment is due for Evergrande on the day," Modi added.
"However, considering the increasing possibility of earnings downgrade in the USA markets following a sharp rise in coronavirus daily caseload and continued reform measures undertaken by the government in India appear to have revived FIIs' interest in the domestic market," he noted.
US equities finished mixed in overnight session with Dow and S&P 500 extending losses for the fourth consecutive day as investors remained wary ahead of Fed meeting outcome and possible fallout from Evergrande's defaults. Bourses in Shanghai and Tokyo were trading with losses. Hong Kong and Seoul markets remained closed. Meanwhile, international oil benchmark Brent crude rose 0.98 percent to $75.09 per barrel.