Value buying snaps 3-day losing streak
Sensex, Nifty rebound nearly 1% on buying support in energy, banking, IT and FMCG stocks
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Mumbai: Benchmark BSE Sensex rebounded nearly one per cent, while Nifty reclaimed the 17,100 level on Wednesday as value buying in energy, banking, IT and FMCG shares helped the indices cut short a three-day losing run.
Positive trends in European markets and US stock index futures ahead of the release of Fed meeting minutes and inflation data also boosted investor sentiment. The 30-share BSE Sensex climbed 478.59 points or 0.84 per cent to settle at 57,625.91. During the day, it jumped 540.32 points or 0.94 per cent to 57,687.64. The broader NSE Nifty reclaimed the 17,100 level by jumping 140.05 points or 0.82 per cent to close at 17,123.60.
"Bears took a breather today as markets witnessed a relief rally after getting hammered in the past few sessions. However, the recovery doesn't seem to be sustainable as multiple negative factors are at play," said Shrikant Chouhan, head (equity research –retail), Kotak Securities Ltd.
"The domestic market was successful in overcoming the weak cues from global peers as it focused on quarterly earnings. The IT earnings season got off to a strong start, which improved the sector's spirits," said Vinod Nair, head (research) at Geojit Financial Services.
Foreign institutional investors (FIIs) offloaded shares worth a net of Rs 4,612.67 crore on Tuesday, according to data available with BSE.
"After the initial uptick, Nifty drifted lower in the early hours however recovery in select index majors across sectors gradually pushed the index higher as the session progressed," said Ajit Mishra, V-P (research), Religare Broking Ltd. Rupak De, senior technical analyst at LKP Securities, said: "Over the short term, the index may remain within a band.
On the lower end, 17000 may act as support; whereas, 17300 may act as resistance on the higher end. The index has found support at 200DMA for the second consecutive day."In the broader market, the BSE midcap gauge jumped 0.66 per cent and smallcap index climbed 0.22 per cent. All BSE sectoral indices ended in the green, with realty climbing 1.69 per cent, FMCG (1.38 per cent), power (1.13 per cent), bankex (1.11 per cent), auto (1 per cent) and financial services (0.92 per cent).
