Sensex Today: Key benchmark indices opened in positive territory amid exuberant global cues and steady crude oil prices. The BSE Sensex soared over 750 points to 55,500, and the NSE Nifty50 topped 16,550.
The broader markets also held smart gains. The BSE MidCap and SmallCap indices were up to 0.8 per cent and 1 per cent, respectively.
Among sectors, Nifty IT, metals and oil & gas packs rose nearly 2 per cent each. All other pockets also sat with firm gains of up to 1 per cent.
Rallis India fell 2 per cent in a strong market on reporting a 18.1 per cent decline in Q1FY23 net profit at Rs 67.47 crore when compared with Rs 82.42 crore in Q1FY22.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “The sharp 8 per cent pullback in Nifty from the June lows of 15,183 is all set to continue aided by a flood of good news. First, the US markets have rebounded sharply driven by impressive corporate earnings. Second, FPI selling appears to have bottomed out. FPIs have bought 5 days this month. The dollar index declining to 106.6 from above 108 is likely to persuade FPIs to buy rather than sell. Third, the relief announced by the government for the petroleum sector through a reduction in windfall tax and cuts in duties on exports will be a major boost for the sector, particularly for RIL. However, investors have to exercise some caution because selling may reemerge at higher levels. Results from the leading financials are likely to be good and the ongoing rally may continue. After the recent correction, IT valuations are attractive. If the US succeeds in avoiding a recession, IT will bounce back smartly.”
Santosh Meena, head of research, Swastika Investmart Ltd., said: “Technically, Nifty has made bottomed out, however, 16,800-17,000 will be an immediate and critical supply zone where we can expect some profit booking. On the downside, 16,300 will be the first support level while 16,000 is a sacrosanct support level. Traders/Investors are advised to use any small dip as a buying opportunity however thing won’t be as easy as it was last year therefore stock selection will be important.”
Global Cues
Asian shares extended a global rally on Wednesday as strong U.S. corporate earnings and the expected resumption of Russian gas supply to Europe helped lift sentiment and ease fears of a recession, while the dollar was mired near two-week lows.
Tokyo stocks opened higher on Wednesday as investors took heart from US rallies and other positive factors while awaiting a Bank of Japan policy decision later this week. The benchmark Nikkei 225 index was up 1.27 per cent, or 341.12 points, at 27,302.80 in early trade, while the broader Topix index advanced 1.29 per cent, or 24.55 points to 1,927.34.
US stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline.
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