Sensex trades higher, Nifty above 9,100; Rupee highest since Oct 28, 2015

The benchmark indices on Wednesday were trading higher a day ahead of the expiry of March derivatives contracts as Asian markets inched up tracking positive closing on Wall Street after US consumer confidence improved unexpectedly. 

At 10:50 am, the S&P BSE Sensex was trading at 29,478, up 69 points, while the broader Nifty50 was ruling at 9,123, up 23 points.

In the broader market, the S&P BSE Midcap gained 0.3%, while the S&P BSE Smallcap added 0.4%. 

"Yesterday’s positivity could push prices further higher earlier in the day, but a range expansion is less likely. Ideally, the 9170 region might offer some resistance, but major falls are less expected. Push above 9200, on the other hand, could suggest that the measured objectives of 9350-9500 is in play again.

Meanwhile, rupee appreciated above 65-mark against US dollar for the first time since October 28, 2015. 

On Tuesday, foreign institutional investors bought equities worth Rs 6,415 crore, while domestic institutional investors were net buyers to the tune of Rs 356 crore.

Sectors and stocks

Nifty PSU Bank (up 0.8%), Nifty media (up 0.5%) and Nifty Fin Services (up 0.3%) contributed most to the gains in Nifty. 

Among individual stocks, Bharti Infratel rallied over 6% to Rs 340 after a consortium of global private equity firms KKR and Canada Pension Plan Investment Board (CPPIB) bought 10.3% stake in tower infrastructure firm from open market on Tuesday. The stock was the top Nifty gainer. 

Dishman Pharmaceuticals and Chemicals hit a fresh record high of Rs 322, up 16% on BSE on the back of heavy volumes after the company on Tuesday said that its partner Tesaro Inc received US Food and Drug Administration (FDA) nod for cancer drug Zejula capsules.

The stock of the drug maker has rallied 39% in the past two trading sessions from Rs 232 on March 27, 2017.

March expiry due tomorrow

On Tuesday, two-day ahead of the March F&O expiry, marketwide rollovers came in at 43%, which were higher than the average rollover of 42% seen during the comparable period of last three series. Nifty futures rollovers, meanwhile, stood at 46% on D-2, marginally higher as compared to the average rollover of 41% seen in last three series. 

ALSO READ: Expect March F&O expiry above 9,100; 9,400 level on the cards in April, says Nitin Murarka

Consumer confidence grows

US consumer confidence surged to a more than 16-year high in March amid growing labor market optimism, while the trade deficit in goods narrowed sharply in February. The economy's strengthening fundamentals were bolstered by other data showing further increases in house prices in January.

Dollar bounces from four-month low

The dollar bounced from 4-month lows as Federal Reserve Vice Chairman Stanley Fischer, one of the more influential policy makers with markets, said two more rate increases this year seem "about right".

Brexit back on the table

British Prime Minister Theresa May signed a letter on Tuesday to European Council President Donald Tusk notifying the European Union of Britain's intention to leave the bloc. The letter is due to be delivered to Brussels later on Wednesday, triggering years of uncertain negotiations that will test the endurance of the European Union.

Global markets

Asian markets were trading in green. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2%, back toward recent 21-month peaks. Australia's main index climbed 0.8% to its highest since mid-2015. Japan's Nikkei and China's Shanghai Composite added 0.1%, while Hong Kong's Hang Seng index was up 0.2%. 

Overnight, Wall Street snapped an eight-day losing streak. The Dow ended Tuesday up 0.7%, while the S&P 500 also gained 0.7% and the Nasdaq 0.6%. 

(With inputs from Reuters)