Covering of short positions by bears supported late recovery in stocks, which helped in trimming losses.
Of the 30 Sensex stocks, 17 companies closed the day with gains, while the remaining 13 registered losses.
Rising for the third straight session, the domestic equity market on Wednesday ended the day on a positive note on strong fog-end buying in banking and financial stocks amid a bearish trend in global equity markets. The BSE Sensex closed at 60,348.09, up 123.63 points, while the NSE smelly rose 42.95 points to reach 17,754.40. However, the rupee weakened by 13 paise to close at 82.05 (provisional) against the US dollar.
Of the 30 Sensex stocks, 17 companies closed the day with gains, while the remaining 13 registered losses. The Sensex had lost over 300 in early morning trade, however, later, it moved into the green zone with a gain of 123.63 points. The BSE benchmark touched a day’s low of 59,844.82 and a day’s high of 60,402.85.
Most Asian bourses, including the Hang Seng and MSCI AC Asia Pacific, declined. Equity exchanges in Europe were trading with losses in the afternoon session. In the overnight session, the US markets closed with a significant decline.
Besides, covering of short positions by bears supported late recovery in stocks, which helped in trimming losses, according to traders. However, weakness in the rupee against key rivals overseas weighed on market sentiment and limited the gains.
On the Sensex, IndusInd Bank was the top gainer, rising 4.75 per cent, followed by M&M, L&T, NTPC, ITC, Ultra Cement, Tata Steel, Maruti and SBI.
In contrast, Bajaj Finance, Tech Mahindra, Infosys and Sun Pharma declined up to 2.30 per cent.
Vinod Nair, Head (Research), Geojit Financial Services said, “Global markets have been gripped by uncertainty as the US Fed chief indicated the possibility of a longer and sharper rate hike, which echoed harsh remarks by another refutes.” Fed officials last week.”
He added that the market now expects a 50 bps rate hike, which has pushed the dollar index to a three-month high. However, towards the end of the day, there was a strong recovery in the domestic market, which kept the bulls up.
International oil benchmark Brent crude was trading 0.16 per cent lower at $83.16 per barrel. Foreign institutional investors (FIIs) were net buyers in the capital market, buying shares worth Rs 721.37 crore on Monday, according to exchange data.
The rupee on Wednesday declined by 13 paise to close at 82.05 (provisional) against the US dollar.
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