Stock markets snapped their two-day losing streak, despite a relatively hawkish policy statement by the Reserve Bank of India (RBI), as a rebound in information technology, metal, and Adani group stocks supported benchmarks. The S&P BSE Sensex zoomed 378 points, or 0.63 per cent, to close at 60,664 levels. The Nifty50, meanwhile, closed at 17,872, ralling 150 points or 0.85 per cent.
The indices hit their respective intra-day highs of 60,792, and 17,898.70.
The Reserve Bank of India’s Monetary Policy Committee has raised the repo rate by 25 basis points to 6.50 per cent in order to bring inflation back towards the central bank’s 4 per cent target, said governor Shaktikanta Das on Wednesday. The MPC also retained its stance of withdrawal of accommodation to ensure that inflation remains on target, Das said.
On the frontline indices, Adani Enterprises surged 23 per cent as it led the winners’ list on the Nifty50. Adani Ports (up 9 per cent), Bajaj Finance, HDFC Life, SBI Life, JSW Steel, Ultratech Cement, Infosys, Hindalco, Reliance Industries, Bajaj Finserv, Divis Labs, Cipla, Apollo Hospitals, TCS, HCL Tech, Wipro, and Grasim were other notable gainers.
L&T, Hero MotoCorp, Eicher Motors, Airtel, Axis Bank, and HUL, however, fell up to 1.56 per cent, thereby creating pressure on the upside.
Sectorally, the Nifty Metal index jumped 4 per cent, followed by the Nifty IT index (1.5 per cent), and the Nifty Pharma index (1.43 per cent). The Nifty FMCG and Realty indices dipped wee bit in red.
Meanwhile, in the broader markets, the BSE MidCap index added 1 per cent, and the BSE SmallCap index gained 0.76 per cent.
Individually, shares of beaten down new-age internet companies, including Paytm, Zomato, and Policybazaar, rallied up to 10 per cent on Wednesday, supported by heavy volumes, on expectation of improvement in financial performance.
Shares of cement manufacturers were trading higher by up to 3 per cent on the BSE in Wednesday’s intra-day trade after Finance Minister Nirmala Sitharaman on Tuesday said that the government will consider a review of the 28 per cent Goods and Services Tax (GST) levied on cement.
Global Cues
US stocks rallied to a convincingly higher close on Tuesday, but trade was choppy as investors digested comments from Federal Reserve Chair Jerome Powell about how long the central bank may need to tame inflation.
Tokyo’s key Nikkei index drifted lower a few minutes after Wednesday’s open as tailwinds from Wall Street rallies were offset by a higher yen against the dollar.
Asian equities rose, while the dollar wobbled on Wednesday after less hawkish than feared comments from Federal Reserve Chair Jerome Powell boosted risk appetite and investor hopes that the central bank may soon ease monetary policy.
Read all the Latest Business News here
Comments
0 comment