The start of March month has been on a positive note for market with Sensex and Nifty 50 gaining by nearly a percent on Wednesday. This would be the first green for the Indian equities after eight consecutive days of selloffs. In the latest trading session, midcap and smallcap witnessed strong buying sentiments. All sectoral indices were in the green on both Sensex and Nifty 50. While metal, IT, banking, energy, and capital goods were among the top contributors.
Optimism in domestic equities came after better-than-expected manufacturing PMI data which offset the shocks of lower-than-estimated Q3 GDP numbers. Also, global peers held a good rally driven by strong Chinese manufacturing data.
Sensex surged by 448.96 points or 0.76% to end at 59,411.08. While Nifty 50 closed at 17,450.90 up by 146.95 points or 0.85%.
SBI led the rally with a nearly 2.7% upside, while Axis Bank followed with an over 2.5% surge after completing the acquisition of Citibank’s consumer and non-banking finance business.
Some of the major IT stocks were also in the lead such as 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 further contributed to the upside with a 1-2% gain.
However, Power Grid (-1.53%) and HDFC Bank (-0.22%) were the only underperformers on Sensex.
S Ranganathan, Head of Research at LKP securities said, “Benchmark Indices finally tasted a tinge of Green in today’s trade on the back of monthly automotive volume numbers and healthy GST collections in a shorter month. Even as the street reacted to the Third Quarter GDP numbers today, markets seem to look forward toward the 5% GDP during Q4. Today’s session however surely witnessed investor interest in several PSU banking stocks which had corrected quite meaningfully.”
Further, Ajit Mishra, VP – of Technical Research, at Religare Broking said, “after the initial uptick, the Nifty index traded in a narrow range for most of the session but buying in select heavyweights kept the tone positive. On the sectoral front, recovery in the IT and metal pack combined with continued resilience in banking played a crucial role. Besides, recovery on the broader front further added to the buoyancy.”
In the broader market, on BSE, the Midcap and Smallcap stock has rallied by nearly 1.4% each. BSE Sensex Next 50 is up nearly 532 points.
In regards to sectoral indices, banking stocks took lead in the rally. BSE Bankex climbed over 522.50 points or 1.15%, while Bank Nifty 50 jumped by 429.10 points or 1.07%.
Among other sectoral indices, on BSE, the Metal index advanced by nearly 495 points or 2.6%, while the IT index zoomed by over 400 points or 1.4%. FMCG and Financial Services were marginally up, but other sectoral indices gained by around 1%.
Also, all Adani stocks ended higher for the first time after the US-based short seller Hindenburg’s report in late January.
Meanwhile, at the interbank forex market, the rupee touched a nearly three-week high as a strong upside in the Chinese yuan drove a rally in Asian currencies against the greenback. The local unit closed at 82.50 per dollar. During the trading hours, the rupee appreciated to 82.37 which is the highest level since February 10 and is also near the 55-day moving average of 82.3514.
Going ahead, Mishra said, “We expect the rebound to extend further but the existence of a hurdle around 17,600 in Nifty might cap the upside.”
He added, “We reiterate our view to focus on identifying trading opportunities based on sectoral trends while keeping a check on leveraged trades. In absence of any major domestic event, global cues would continue to induce volatility in between.”
Indian market closed the month of February on a bearish note with Sensex down over 1% and Nifty 50 tumbling nearly 2%.