MARKET COMMENT Jayant Manglik, President, Religare Broking The bulls were back in business, as the equity benchmark indices managed to end Wednesday’s session on a positive note, led by some short covering. The Nifty index ended on a firm note gaining 1.5% at 10,460 levels. The broader market indices ‘BSE Midcap & Smallcap’ outperformed the benchmark, registering healthy gains of 4.2% and 3.4%, respectively. Barring IT, which closed in red, all the other sectoral indices ended on a positive note with Auto, banks and Consumer Durables being the top gainers. Globally, European markets were trading in red while Asian markets ended on a mixed note. We maintain our cautious view on the Indian markets in the near term, as volatility is likely to remain high. Focus of market participants would shift to corporate earnings season and the domestic macro data like IIP and CPI / WPI inflation which are scheduled over next 1-2 weeks, as it would dictate further course of markets. Also movement of currency, crude oil prices and global developments would be actively tracked by investors. Under uncertain market conditions, traders & investors should be selective in stock picking
The S&P BSE Sensex ended at 34,761, up 461 points, while the broader Nifty50 index settled at 10,460, up 159 points.
During the day, the rupee traded on a firm note having risen to 74.05 against the greenback in intra-day trade. The Indian currency had opened 24 paise firm at 74.14 earlier in the day after ending at a record low of 74.39 per dollar on Tuesday.
Among the sectoral indices, Nifty Bank index rose 3.2 per cent led by a rise in Axis Bank, State Bank of India and ICICI Bank. The Nifty Auto index, too, rose 2.6 per cent higher led by Maruti Suzuki India. However, the Nifty IT index slipped 1.5 per cent weighed by Infosys and Tata Consultancy Services.
In the broader markets, the S&P BSE MidCap index rose 4.2 per cent to settle at 14283 while the S&P BSE SmallCap rose 3.7 per cent to 13998.
(With inputs from Reuters)