Sensex builds on gains ahead of F&O expiry; metal, power stocks rally

The BSE Sensex marched higher for the second straight day Wednesday on robust buying in metal, power and financial stocks ahead of June derivatives expiry.

Overcoming a choppy start, the 30-share index finished 157.14 points, or 0.40 per cent, higher at 39,592.08. Similarly, the broader NSE Nifty jumped 51.10 points, or 0.43 per cent, to 11,847.55.

Buying interest was seen in metal, power, healthcare, capital goods and financial counters ahead of the expiry of June futures and options (F&O) contracts scheduled for Thursday, traders said.

Sentiment also received a boost after the US administration said a trade deal with China is "about 90 per cent" complete.

Besides, domestic investors are hoping for positive news on the US-India trade front in the backdrop of US Secretary of State Mike Pompeo holding talks with Prime Minister Narendra Modi in New Delhi, traders added. Modi and US President Donald Trump are scheduled to meet on the sidelines of the G20 Summit in Osaka, Japan, later this week.

The progress of monsoon and a strengthening rupee added to the buying momentum.

Vedanta was the biggest gainer in the Sensex pack, spurting 4.40 per cent. PowerGrid, Sun Pharma, Yes Bank, Tata Steel, HDFC Bank, Bajaj Finance, ICICI Bank and Bajaj Auto too ended up to 4.12 per cent higher.

On the other hand, Infosys, IndusInd Bank, Tech Mahindra, Bharti Airtel, Maruti, TCS and HDFC were among the top losers, shedding up to 1.12 per cent.

"Indian market bounced higher led by pharma and banking sector due to positive view for Q1 FY20 result given a low base and improvement in business outlook. Metals also inched higher due to ease in trade war tensions.

"Expectation over Budget and Q1 FY20 (results) will control the trend of the market," said Vinod Nair, Head of Research, Geojit Financial Services.

Sectorally, BSE metal, power, utilities, basic materials, realty, healthcare, bankex and finance ended up to 2.88 per cent higher.

IT, teck, telecom and FMCG shed up to 0.65 per cent.

The broader BSE midcap and smallcap indices outperformed the benchmarks, rising up to 0.85 per cent.

On the currency front, the Indian rupee appreciated 22 paise to 69.13 against the US dollar intra-day.

On a net basis, foreign institutional investors bought equities worth Rs 1,157.87 crore Tuesday, and domestic institutional investors purchased shares to the tune of Rs 377.22 crore, provisional data available with stock exchanges showed.

Brent crude futures, the global oil benchmark, rose 1.17 per cent to USD 65.03 per barrel.

Globally, while bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a mixed note, equity markets in Europe were trading in the green in early deals.