Benchmark indices snap eight-day losing streak; Sensex gains 449 points

Entire Adani pack gains for first time since Hindenburg report

India’s benchmark indices snapped their eight-day declining streak on Wednesday amid buying in beaten-down stocks, and positive sentiment on account of some bounce-back in Adani group shares.

Most global markets traded positive as strong manufacturing data from China helped offset concerns about a tighter monetary policy by the US Federal Reserve. China’s National Bureau of Statistics reported that its official manufacturing purchasing managers’ index rose to 52.6 in February, the highest since April 2012.

The Sensex rose 449 points, or 0.8 per cent, to end the session at 59,411, while the Nifty settled at 17,451 after gaining 147 points. On Wednesday, foreign portfolio investors sold shares worth Rs 425 crore, while domestic institutions were net buyers to the tune of nearly Rs 1,500 crore, provisional data from the exchanges showed.

In the previous eight trading sessions, the Sensex and the Nifty had declined around 4 per cent each in what was their longest losing run since May 2019. 

Adani group stocks gained for a second straight day as the conglomerate initiated steps to restore investor confidence. The group added Rs 44,145 crore in market cap on Wednesday, with all 10 Adani stocks ending with gains for the first time since the Hindenburg report on January 24. Flagship Adani Enterprises gained the most at 14.7 per cent, extending its two-day advance to nearly 30 per cent.

Barring two, all the Sensex stocks gained. Reliance Industries rose 0.9 per cent and TCS 2.1 per cent, contributing the most to the Sensex gains. The market breadth was positive with 2,411 stocks advancing and 1,097 declining.

“Markets started the March month on a positive note and gained nearly 1 per cent, taking a breather after the recent fall. After the initial uptick, the Nifty index traded in a narrow range for most of the session, but buying in select heavyweights kept the tone positive. Besides, recovery on the broader front further added to the buoyancy. We expect the rebound to extend further but the existence of a hurdle around 17,600 in the Nifty might cap the upside,” said Ajit Mishra, VP-technical research at Religare Broking.

The Nifty also managed to close above its 200-day moving average (DMA), a key technical indicator.

Experts, however, cautioned that markets could turn volatile as investors grapple with the realisation that central bankers were likely to stay hawkish in the coming months.

“We expect markets to see some recovery after the sharp fall in the last few days. However, cautiousness should be maintained on the back of intensified FII selling and upcoming macro data globally,” said Siddhartha Khemka, head of research retail, Motilal Oswal Financial Services.