Markets post biggest gain in a month

Indian markets posted their biggest daily gain in more than a month on Wednesday, as easing geopolitical tensions between the US and North Korea boosted investor sentiment. The rally was fuelled by value-buying from domestic investors, following a correction of nearly five per cent last week.
 
The benchmark BSE Sensex gained 321.86 points, or 1.02 per cent, to close at 31,770.89, while the National Stock Exchange’s Nifty 50 index rose 103.15 points, or 1.05 per cent, to close at 9,897.3. Resuming trade after a public holiday on Tuesday, both the indices gained the most since July 10 and extended their two-session gains to nearly two per cent.

 
Index heavyweight ITC gained three per cent and contributed 73 points to the Sensex’s gains. Hindustan Unilever (HUL) gained 2.7 per cent. Tata Motors and Cipla were the biggest gainers among the Sensex pack, adding over 3.5 per cent each. Twenty of the BSE’s 31 components ended with gains. The broader market, too, was positive, with 17 of the BSE’s 19 sectoral indices finishing in green.
 

“Concerns over geopolitical tensions have eased a bit, which provided some support to the market. We also saw short-covering and value-buying around mid-day. Ample liquidity in the market continues to protect the downside,” Jitendra Panda, managing director at Peerless Securities, said.

 
Domestic investors bought shares worth Rs 1,337 crore, even as their foreign counterpart pulled out Rs 1,090 crore. Foreign investors have pulled out over Rs 5,000 crore in the past four trading sessions.
 
Last week, investors had turned risk averse after a sudden escalation in tension between the US and North Korea and between India and China. Disappointing corporate earnings also contributed to the bearishness.
 
Of the Nifty 50 companies, 40 per cent missed the consensus earnings expectations, while 22 per cent were ahead in the April-June results, Gautam Chhaochharia and Sanjena Dadawala, analysts at UBS Securities India, wrote in a note dated August 15.