Benchmark stock indices Sensex and Nifty jumped over 1 per cent on Wednesday, with foreign funds becoming net buyers of domestic equities after a long gap, buying into FMCG, financial and auto stocks and softening crude oil prices.
The 30-share BSE benchmark index ended 616.62 points or 1.16 per cent higher at 53,750.97. During the day, it closed 684.96 points or 1.28 per cent higher at 53,819.31. The NSE Nifty closed 178.95 points or 1.13 per cent higher at 15,989.80.
Bajaj Finserv, Bajaj Finance, Hindustan Unilever, Asian Paints, Titan, Maruti Suzuki India, Kotak Mahindra Bank and Nestle were major gainers in the Sensex pack. Power Grid, NTPC, Reliance Industries, Larsen & Toubro and Tata Steel were among the laggards.
Vinod Nair, Head of Research, Geojit Financial Services, said softening crude oil prices, relocation of FIIs to net buyers and strong trading data from lenders dampened optimism in domestic equities.
Nair said crude oil prices fell sharply by 10 per cent on Tuesday, fueling appetite for consumption, chemicals, logistics and OMCs as it would ease the cost burden of these sectors.
“As per preliminary data made public on NSE, FIIs became net buyers on July 5 for the first time since May 30, buying shares worth Rs 1,295.84 crore,” said Mohit Nigam, head of PMS at Hem Securities.
Kunal Shah, Senior Technical and Derivatives Analyst, LKP Securities said, “Nifty bulls came back stronger from lower levels and ended the index on a higher note. The index crossed the 16,000 level and closed above it, indicating a continuation. Gives an uptrend towards 16200 levels. Lower-end support is at 15,800 levels and as long as this support remains, the index remains in buy mode.”
The BSE barometer had closed at 53,134.35, down 100.42 points or 0.19 per cent on Tuesday. The Nifty closed at 15,810.85, down 24.50 points or 0.15 per cent.
Elsewhere in Asia, markets in Tokyo, Shanghai, Hong Kong and Seoul closed lower on Wednesday. European markets were trading with gains in mid-session deals. The US markets closed mostly with gains on Tuesday.
Meanwhile, international oil benchmark Brent crude jumped 2.43 per cent to $105.3 per barrel.
With PTI inputs