After an over 300-point fall in Sensex yesterday and Nifty closing below the crucial 9,850 levels, the benchmark indices settled higher on Wednesday, while the broader indices hit fresh closing highs.
Among individual stocks, a strong rally in Aurobindo Pharma, up on hopes of higher US sales, and Hindustan Unilever hitting a record high after its June quarter results, hogged the limelight.
Meanwhile, a weak US dollar combined with upbeat Chinese data to lift emerging market and Asian shares to levels not seen in more than two years and global stocks to an all-time high on Wednesday.
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Anand James, Chief Market Strategist, Geojit Financial Services
Banks continue to remain expectant, while Pharma has found defensive buying, helped by positive FDA observations, helping markets to put GST shocks behind. Stock specific moves have now become more dominant with earnings beginning to flow in.
Nifty oulook by Mustafa Nadeem, CEO, Epic Research
A bullish candlestick is observed in today’s session after a Doji yesterday confirming the buying momentum. Bulls emerged at lower levels as buying was seen across sectors.
A doji followed by a bullish candlestick negated the selling pressure at higher levels with Nifty retracing back to 9,900. A bullish confirmation is in place for short term. Resistance is seen at 9,920-9,930 which may continue with next possible target at 10,000 while if market cannot sustain the said resistances, we may see a mild profit-booking. though overall range becomes 9,950 – 9,800 for the short-term.
ITC ends over 2% higher at Rs 291 after the stock witnessed its sharpest fall in nearly two decades – down 13% on closing basis – on Tuesday.
On the sectoral front, all the sectoral indices on the National Stock Exchange (NSE) settled with gains. Recouping from yesterday’s losses, the FMCG index closed the day with gains of 1.4%. Healthcare, metals and media stocks supported the market on the upside.
Top Sensex gainers and losers
The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,668 shares rose and 964 shares fell. A total of 151 shares were unchanged.
Broader markets outperform. The BSE Midcap (up 1%) and the BSE Smallcap (up 0.9%) hit fresh closing highs.
Sensex ends at 31,955, up 244 points, while the broader Nifty50 closes at 9,899, up 72 points.
The S&P BSE Midcap index hit a new high of 15,265, up 1% on BSE, after a strong gain in oil & gas, metals and financial stocks. The index surpassed its previous high of 15,247.90 touched on Monday, July 17, 2017 in intra-day trade.
European bourses were higher Wednesday morning as investors took stock of a series of corporate announcements from across the continent. Euro Stoxx 50 and FTSE 100 were up 0.1% each, while CAC 40 gained 0.2%.
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All sectoral indices were trading in green; Nifty Pharma leads with over 2% gains
Bajaj Finance hit a new high of Rs 1,578, up 4% on BSE in intra-day trade, after the company reported a better than expected 42% year on year (YoY) jump in its standalone net profit at Rs 602 crore for the June quarter against Rs 424 crore reported in the same quarter year ago. CLICK HERE FOR EARNINGS REPORT
Markets extended gains in the late afternoon deals with Nifty50 rising as much as 9,899. At 3:00 am, the Sensex was trading at 31,945, up 234 points, while the broader Nifty50 was ruling at 9,891, up 64 points.
Broader markets continue to outperform headline indices. BSE Midcap and BSE Smallcap indices up nearly 1% each.
At 2:10 pm, the Sensex was trading at 31,875, up 164 points, while the broader Nifty50 was ruling at 9,875, up 48 points.
BSE, Sensex, stocks
A Reuters poll showed that India will reclaim its position as the fastest growing major global economy this year, partly propelled by benefits from GST regime and bolstered by an expected interest rate cut by RBI in its next policy meeting in August. CLICK HERE FOR FULL REPORT
The dollar huddled near multi-month lows on Wednesday as investors wagered any further tightening in the United States would be slow at best, while optimism on China’s economy underpinned Asian shares and commodities.
The US currency was still smarting after the collapse of the Republicans’ push to overhaul healthcare dealt a blow to President Donald Trump’s ability to pass promised tax cuts and infrastructure spending.
Top gainers and losers on BSE Sensex
Market Check: At 12:10 pm, the S&P BSE Sensex was trading at 31,880, up 169 points while the broader Nifty50 index was ruling at 9,876, up 49 points.
In broader markets, BSE Midcap was up 0.7% while the BSE Smallcap gained 1%
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Sasken Technologies fell 3.56% on BSE after its consolidated net profit fell 60.06% to Rs 17.30 crore on 0.07% decrease in net sales to Rs 117.58 crore in Q1 June 2017 over Q4 March 2017.
Media firm Zee Entertainment Enterprises Ltd (ZEEL) gained over 3% after the firm said on Tuesday that it has acquired the remaining 51% stake in Fly By Wire.
Nifty Media index rose over 1.5% making it one of the top sectoral gainers on NSE. Dish TV, EROS Media, Network 18 and Sun TV also gained between 1-3% n today’s trade.
TV to ride the media & entertainment boom
Gold prices held steady on Wednesday, not far from the over two-week highs hit in the previous session, as the dollar crept up from multi-month lows even as fading prospects of a U.S. monetary tightening continued to pressure the greenback.
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Aurobindo Pharma surged 8% to Rs 795 on BSE in intra-day trade after the company announced that it has received final approval from the US Food and Drug Administration (USFDA) to manufacture Sevelamer Carbonate tablets, a kidney disease drug.
At 10:14 am, the S&P BSE Sensex was trading at 31,835, up 124 points while the Nifty50 index was ruling at 9,863, up 38 points.
In broader markets, the BSE Midcap and BSE Smallcap were trading 0.5% and 0.8% higher respectively.
All sectoral indices were trading in green led by pharma and realty sectors.
ONGC fell nearly 1% on proposed merger of ONGC and HPCL. The government is likely to give the control of HPCL to ONGC, which is in agenda for the Cabinet meeting to be held later today.
HPCL, on the other hand, gained 1% in today’s trade
After a 12% fall yesterday on rise in cess for tobacco products, ITC gained over 1% in today’s trade on value buying. The stock has fallen over 10% in July so far.