Markets ended modestly higher on Wednesday, propped up by value buying in index heavyweights RIL, ICICI Bank and HDFC Bank, even as risk sentiment remained subdued amid rising coronavirus cases in the country.
Despite rebounding over 386 points during the day, the 30-share BSE Sensex pared most gains to settle 62.45 points or 0.18% higher at 35,697.40.
On similar lines, the broader NSE Nifty closed 6.95 points or 0.07% up at 10,458.40.
Investors made a cautious return to some recently-mauled counters in the energy, banking and consumption sectors, traders said.
Top gainers in the Sensex pack included Hero MotoCorp (4.08%), Reliance Industries (3.60%), ICICI Bank (1.80%) and HUL (1.51%).
On the other hand, Tata Steel, IndusInd Bank, ONGC, SBI and Infosys tumbled up to 7.11%.
According to analysts, equity benchmarks gave up most gains as nervousness heightened among investors amid rapidly increasing coronavirus cases in the country and mixed cues from global markets.
The number of confirmed cases of coronavirus in India rose to 60 on Wednesday, with two fresh cases in Delhi and Rajasthan.
The coronavirus epidemic has wreaked havoc across the world, killing more than 4,000 people and leaving close to 120,000 infected.
“Market seems to be pricing in a large dose of liquidity infusion by global central banks. Overnight US market rose on the prospect of fiscal stimulus measures by the US Federal Reserve to curb slower economic growth stemming from the coronavirus outbreak and similar measures are also expected from European Central Bank.
“Bank of England today cut rates in an emergency move to combat coronavirus impact by 50 basis points to 0.25%,” said Paras Bothra, President of Equity Research, Ashika Stock Broking.
BSE energy, telecom, capital goods, finance and banking indices gained up to 2.11%, while realty, oil and gas, metal, IT, consumer durables and auto settled in the red.
The broader BSE midcap and smallcap indices underperformed the benchmarks, ending up to 0.89% lower.
Global markets were mixed as investors assessed the impact of the coronavirus outbreak amid expectations of coordinated measures by various central banks to boost growth.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with significant losses, while those in Europe rallied up to 2% in early trade.
Brent crude oil futures slipped 2.02% to USD 36.47 per barrel, after Saudi Arabia hiked production by one million barrels a day.
On the currency front, the Indian rupee recovered 56 paise to settle at 73.61 (provisional) against the US dollar on Wednesday amid positive domestic equities and weakening of the American dollar in the overseas market.
The rupee on March 9 had plunged to a 17-month low of 74.17 against the US dollar amid mounting fears of a coronavirus-led economic slowdown.
At the interbank foreign exchange market, the rupee opened higher at 73.88 gained further ground to touch a high of 73.55 in day trade. The local unit finally settled at 73.61 (provisional) against the US dollar, registering a rise of 56 paise over its previous close.
The forex market was closed on Tuesday on account of Holi.
“Rupee traded strong after flat positive opening on selling of USDINR pair by exporters following likely intervention by the Reserve Bank of India (RBI) to curb sharp volatility in the currency pair USDINR,” said Jateen Trivedi, senior research analyst (commodity & currency) at LKP Securities.
Trivedi further said that “more or less the market will keep trading volatile as coronavirus updates keep the buyers interested in USIDNR pair but falling crude prices give the strength to rupee”.
Going ahead the rupee can trade in range in 73.45-73.85, he noted.