With benchmark indices lifting select heavyweights to close positive for the third consecutive day on Wednesday, Indian shares edged closer to the day’s higher levels. At the close, the Sensex was up 123.63 points or 0.21% at 60,348.09 and the Nifty was up 42.90 points or 0.24% at 17,754.40. 1894 scrips advanced, 1502 scrips declined and 119 scrips remained unchanged.
IndusInd BankAdani Ports, Adani Enterprises, Bajaj Auto and Larsen & Toubro were among the top gainers on the Nifty, while losers were Bajaj Finance, Hindalco Industries, Tech Mahindra, Apollo Hospitals and Infosys.
Most Adani Group shares extended gains after embattled Adani Group’s share-backed financing was prepaid 7,374 crores.
“Foreign investors have turned buyers in Indian equities over the last three sessions and easing of concerns on Adani Group is the only silver lining for our markets,” said Arihant Capital’s Gandhi.
Group flagship, Adani Enterprises and Adani Ports added 2.83% and 3.11%, respectively, and were among the top Nifty 50 gainers.
Bajaj Auto The move came after analysts projected improvement in its domestic two-wheeler business in the next fiscal, up 2.31%.
Both the benchmarks opened lower in tandem with Asian shares. However, Asian shares remained under pressure after Powell said on Tuesday that strong US economic data could lead to a longer and longer-than-expected rate hike.
“Fear of aggressive rate hike again has started troubling the participants globally but recent price action indicates that the panic will subside soon and markets will attempt to move higher in the next sessions. Amidst global cues, buoyancy in the banking sector combined with selective buying in index majors from sectors such as energy, IT, auto and FMCG may continue to play a key role in the recovery.Technical Research, Religare Broking Ltd
The probability of a 50 basis point hike at the Fed’s policy meeting later this month now exceeds 70%.
“Global markets have been gripped by uncertainty as the Fed chief last week signaled the possibility of a longer and sharper rate hike, contradicting hawkish remarks made by another Fed official. The market now expects a 50 bps rate hike, which has pushed the dollar index to a three-month high. However, the domestic market saw a strong recovery towards the end of the day, which maintained the upside momentum,” said Vinod Nair, Head of Research, Geojit Financial Services.
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