Indices log gains for 10th straight day after rally in bank, finance stocks

Equity indices defied gravity for the 10th straight session on Wednesday, following a fag-end rally in banking and financial counters that helped offset profit-booking in IT stocks. 

The Sensex opened on a weak note but gained ground in the last hour to finish at 40,794.74, up 169.23 points or 0.42 per cent. Similarly, the broader Nifty rose 36.55 points or 0.31 per cent to close at 11,971.05.

Bajaj Finserv led the Sensex gainers’ chart, jumping 3.87 per cent, followed by Bajaj Finance, ICICI Bank, IndusInd Bank, SBI, Tata Steel, Axis Bank, L&T, and HDFC Ltd.

On the other hand, NTPC, ONGC, PowerGrid, Tech Mahindra, Infosys, ITC, and HCL Tech were major laggards, dropping up to 4.35 per cent.

Announcing its results after market hours, Infosys said its consolidated net profit grew 20.5 per cent to Rs 4,845 crore for the September quarter, while it has raised revenue forecast to 2-3 per cent for FY21.

“Initially, the benchmark indices opened in red on the back of unsupportive global cues. Besides, the news of IMF lowering its growth forecast for India for the second time in four months was also weighing on the sentiment. However, a sudden surge mainly in the banking and financial counters changed the tone and helped Nifty to pare all its losses and close near 11,970 levels. On the flip side, IT, oil and gas and power traded subdued. The rebound is on expected lines and we expect a further surge,” said Ajit Mishra, vice-president of research at Religare Broking.

BSE finance, bankex, realty, capital goods and basic materials indices rose up to 1.68 per cent, while utilities, power, IT, teck, oil and gas, healthcare and auto closed lower.

Asian indices rise after slide at Wall Street

Major global markets rose on Wednesday after worries regarding the pandemic snapped a four-session winning streak at Wall Street. 

Uncertainty over prospects for more stimulus from Washington also continues to hang over markets. 

Japan’s Nikkei225 erased early losses to gain 0.1 per cent to 23,626.73, while Hong Kong’s Hang Seng eked out a late gain of 0.1 per cent, at 24,667.09.

South Korea’s Kospi lost 0.9 per cent to 2,380.48 and the S&P/ASX 200 in Australia declined 0.3 per cent to 6,179.20.  The Shanghai Composite index shed 0.6 per cent to 3,340.78. 

In Europe, investors were awaiting earnings reports and a speech by the European Central Bank chief, Christine Lagarde. PTI|AP