Relief rally: Indices snap five-day losing run; Sensex gains 574 points

Gains were led by heavyweights like RIL, Infosys amid strong global cues

The benchmark indices snapped their five-day losing streak on Wednesday amidst interest in index heavyweights and favourable global cues. The benchmark Sensex gained 574 points to hit 57,037, a gain of 1.02 per cent. The Nifty, on the other hand, ended the session at 17,136, a gain of 178 points, or 1.05 per cent.

RIL, which rose 3 per cent on Wednesday, contributed 244-points to the Sensex. The March quarter results posted by HDFC Bank and Infosys triggered a sell-off in IT and financial stocks as investors feared downgrades in earnings. Asian markets were also riding on positive cues from Wall Street. Markets in China and Hong Kong ended in the red after the Chinese central bank kept its benchmark rates unchanged, despite frequent government pledges to support a slowing economy.  

European stock markets managed to push cautiously higher, staging a minor relief rally.

"We were bound to bounce back after the recent fall. Global cues provided the positive trigger," said Andrew Holland, chief executive officer (CEO), Avendus Capital Alternate Strategies.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,009 crore on Wednesday, while domestic investors were buyers to the tune of Rs 2,645 crore. The selling by FPIs was half the amount seen during the previous two sessions.

"Foreign investors are taking out funds in large quantities while support from domestic investors is helping the market balance the pressure. Elevated levels of volatility can be expected to continue until global uncertainties settle down," said Vinod Nair, head of research, Geojit Financial Services.

The market breadth was mixed, with 1,741 stocks declining and 1,659 advancing. Auto and energy stocks gained the most, and their sectoral indices rose 2.21 and 2.19 per cent, respectively.  

Global equities have been under pressure lately amidst fears of aggressive tightening by central banks to fight inflation and the prospect of a decline in economic growth due to the geopolitical tensions in Ukraine. The US 10-year Treasury yield traded around 2.9 per cent.