Market fog clears after 8 days of selling: Bank, metal, IT stocks gain

Domestic equities find optimism after better-than-expected manufacturing PMI data That offset the jitters of the lower-than-anticipated Q3 GDP number from estimates. Also, global competitors staged a decent rally driven by strong Chinese manufacturing data.

Sensex closed 448.96 points or 0.76% higher at 59,411.08. While the Nifty 50 closed at 17,450.90 with a gain of 146.95 points or 0.85%.

SBI led the rally with about 2.7% upside, while axis Bank Shares rose more than 2.5% after completing the acquisition of Citibank’s consumer and non-banking finance business.

Some prominent IT stocks were also in lead like Tech Mahindra (+2.3%), HCL Tech (+2.2%), and TCS (+2.16%). Other stocks such as IndusInd Bank, Maruti Suzuki, Tata Steel, Tata Motors, Bharti Airtel, Kotak Bank and Wipro contributed to the gains of 1-2% each.

However, Power Grid (-1.53%) and HDFC Bank (-0.22%) were the only underperformers on the Sensex.

S Ranganathan, Head of Research, LKP Securities said, “The benchmark indices finally tasted the green in today’s trade on the back of strong monthly automotive volume numbers and healthy GST collections in the month ahead. Numbers today, market 5% GDP growth during Q4 However today’s session certainly saw investor interest in several PSU banking stocks which corrected quite meaningfully.

Further, Ajit Mishra, VP – Technical Research, Religare Broking said, “After initial upswing, Nifty index traded in a narrow range for most of the session but buying in select heavyweights maintained positive trend. On sectoral front “Recovery in IT and metal packs played a key role, along with continued resilience in banking. Besides, recovery on the broad front added to the upside.”

In the broader market, on BSE, midcap and smallcap stocks gained around 1.4% each. BSE Sensex Next 50 is up around 532 points.

Banking stocks gained in sectoral indices. BSE Bankex climbed over 522.50 points or 1.15%, while the Bank Nifty 50 jumped 429.10 points or 1.07%.

Among other sectoral indices, on the BSE, the metal index rose by nearly 495 points or 2.6%, while the IT index gained over 400 points or 1.4%. FMCG and financial services were marginally higher, but other sectoral indices gained around 1% each.

Besides, all Adani shares closed higher for the first time since late January US-based short seller Hindenburg reported.

Meanwhile, at the interbank forex market, the rupee touched a near three-week high as a strong rise in the Chinese yuan lifted Asian currencies against the greenback. The local unit closed at 82.50 per dollar. During trading hours, the rupee advanced to 82.37, its highest level since February 10 and also close to its 55-day moving average of 82.3514.

Going forward, Mishra said, “We expect the rebound to extend further but the hurdle around 17,600 in Nifty may turn upside down.”

He further added, “We reiterate our approach of focusing on identifying trading opportunities based on sectoral trends while keeping a check on leveraged trades. In the absence of any major domestic event, global cues are expected to show intermittent volatility.” Will keep inspiring.”

Indian markets closed the month of February on a bearish note, with the Sensex falling over 1% and the Nifty 50 falling nearly 2%.

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