Sensex falls for four sessions amid strong global cues; IT stocks shine
Equity indices on Thursday gained marginally after four sessions of losses, coupled with a rally in global markets, despite a tilt from the US Federal Reserve. Traders said a firming rupee also boosted sentiments, though selling by foreign institutional investors limited the upside.
After a choppy session, the 30-share BSE Sensex closed 113.11 points or 0.20 per cent higher at 57,901.14. Similarly, the broader NSE Nifty rose 27 points or 0.16 per cent to 17,248.40.
Bajaj Finance led the Sensex gainers’ chart with a jump of 2.61 per cent, followed by Infosys, Titan, Reliance Industries, HCL Tech, M&M and Nestle India. In contrast, Maruti, ICICI Bank, Bajaj Auto, Sun Pharma, IndusInd Bank and SBI fell up to 1.51 per cent. Vinod Nair, Head of Research, Geojit Financial Services, said, “Despite an upbeat economic outlook by the US Fed, domestic stocks closed flat with a slight positive bias. Domestic weakness was on account of moderation in FII selling and retail activity.”
“The Fed chair’s announcement of a doubling of asset momentum in early 2022, not three interest rate hikes in mid-2022, paved the way for an increasingly strong economy and employment amid inflation concerns,” he said. Backed by profit,” he said.
Ajit Mishra, VP (Research), Religare Broking said that the market witnessed marginal gains amid volatility in the market after the recent fall. “As all major events are now over, we feel that the performance of global markets will be crucial in the days to come. Also, we expect discussions to continue in the primary market. In regions, only IT packs for us. Looks conclusive while others are seeing mixed trends.”
Sectorally, BSE IT, Energy, Tech, Consumer Durables and Oil & Gas indices rose up to 1.25 per cent, while Power, Utilities, Realty and Bankex suffered losses. The broader BSE Midcap and Smallcap indices underperformed the benchmarks to lose up to 0.70 per cent.
Global markets followed Wall Street, even as the Fed signaled an end to its pandemic-induced easing monetary policy amid inflation concerns. The Fed said it would accelerate the tapering of its monthly bond-buying beginning in January, followed by a rate hike.
Elsewhere in Asia, shares ended with gains in Shanghai, Hong Kong, Tokyo and Seoul. Stock exchanges in Europe were trading on a positive note in the afternoon session
Meanwhile, international oil benchmark Brent crude rose 0.97 per cent to $74.60 per barrel. On Thursday, the rupee had gained 23 paise to close at 76.09 against the US dollar.
Foreign institutional investors continued their sell-off, selling a net worth of Rs 3,407.04 crore on Wednesday, according to stock exchange data.
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