Indian stock markets surged, with Sensex and Nifty closing higher for the third consecutive day, driven by factors like falling crude oil prices and a robust IT sector performance.
Illustration: Dominic Xavier/Rediff
Key Points
- Sensex and Nifty indices closed nearly 1% higher, continuing a three-day winning streak.
- The rally was fueled by a drop in crude oil prices and positive trends in global markets.
- IT stocks played a significant role in driving the optimistic market sentiment.
- Foreign Institutional Investors (FIIs) were net sellers, while Domestic Institutional Investors (DIIs) supported the market with purchases.
- Global markets, including those in Asia and Europe, showed positive trends, contributing to the overall market optimism.
Stock market benchmark indices Sensex and Nifty ended nearly 1 per cent higher on Wednesday, extending their winning run to the third day in a row, amid a slight drop in crude oil prices and a firm trend in global peers.
A rally in IT stocks also led to the optimistic trend in the domestic markets.
The 30-share BSE Sensex jumped 633.29 points or 0.83 per cent to settle at 76,704.13.
During the day, it soared 929.38 points or 1.22 per cent to 77,000.22.
The 50-share NSE Nifty surged 196.65 points or 0.83 per cent to end at 23,777.80.
The Gainers and Losers
From the 30-Sensex firms, Eternal, Tech Mahindra, Infosys, Mahindra & Mahindra, HCL Tech, Adani Ports, Tata Consultancy Services and Axis Bank were among the major gainers.
NTPC, Hindustan Unilever, Sun Pharma and HDFC Bank were among the laggards.
Brent crude, the global oil benchmark, dipped 0.10 per cent to USD 103.3 per barrel.
Global Market Influences
In Asian markets, South Korea’s benchmark Kospi jumped 5 per cent and Japan’s Nikkei 225 index climbed 2.87 per cent. Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index also ended higher.
Markets in Europe were trading in positive territory.
The US market ended higher on Tuesday.
Analyst Insights
“Domestic markets extended their recovery, supported by opportunistic buying after the recent sell-off.
The rebound was broad-based, driven by a combination of short covering and value buying, with leadership from IT, realty, and auto sectors, alongside strength in mid and smallcap stocks,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Investment Trends
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,741.22 crore on Tuesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 5,225.32 crore.
