MARKET COMMENT Jayant Manglik, President, Religare Broking After correcting sharply over the last two sessions, the Indian equity benchmark indices staged a smart comeback, led by a sharp recovery in the Rupee (vs USD) from record lows of 72.91. After trading in a narrow range during first half, the Nifty index bounced back sharply post noon from intra-day low from 11,250 and ended the session near the day’s high at 11,370 levels, up 0.7%. The broader market indices exhibited a mix picture with BSE Smallcap underperforming the benchmark and closing lower by 0.3%, while BSE Midcap ended higher by 0.5%. Barring Realty & Banks, which underperformed, all the other sectoral indices ended in the green with FMCG, Metals & Capital Goods being the top gainers. Globally, most Asian indices ended on a weak note, while European markets were trading flat to marginally higher. Despite today’s upmove, we continue to remain cautious on the Indian markets. Key macro data like IIP & CPI, movement of crude oil prices, currency (INR vs USD) and global developments, especially on the trade war front will dictate the market trend in the coming sessions. Traders should strictly hedge their positions, as we expect volatility to increase in the coming sessions
The S&P BSE Sensex ended at 37,718, up 305 points while the broader Nifty50 index settled at 11,370, up 82 points.
Among sectoral indices, the Nifty FMCG index ended 2.5 per cent led by a rise in the share prices of GlaxoSmithKline Consumer Healthcare and ITC. The Nifty Pharma index, too, rose 1.1 per cent led by Sun Pharmaceutical Industries.
The markets will remain closed on Thursday on account of Ganesh Chaturthi. On Friday, the investors will react to July industrial production and August CPI inflation data, which will be announced later today.
The rupee bounced back from its fresh lifetime low, recovering around 70 paise to trade at 72.20 against the greenback.
Earlier in the day, it hit a new record low of 72.91 per dollar, weighed down by inflationary concerns and amid weakness in global currencies against the dollar.
Asian stocks slipped to 14-month lows on Wednesday with investor confidence chilled by the latest round of verbal threats in an intensifying US-China trade conflict.
(with wire inputs)