Stock markets recover on buying in bank stocks, Sensex rises by 130 pts

Benchmark indices Sensex and Nifty recovered on Wednesday following buying in bank stocks and softer-than-expected US inflation data, reinforcing expectations that the Federal Reserve may adopt a less aggressive monetary policy stance in the coming months.

The 30-share BSE Sensex climbed 130.49 points, or 0.17 per cent, to settle at 77,185.43. During the day, it jumped 591.33 points, or 0.76 per cent, to 77,646.27.

The 50-share NSE Nifty went up 26.45 points, or 0.11 per cent, to end at 24,078.50.

Escalating hostilities between the US and Iran, however, kept investors’ sentiment subdued in the second half of the trade, triggering profit-taking.

From the Sensex pack, Eternal, UltraTech Cement, State Bank of India, Bajaj Finance, InterGlobe Aviation, and Asian Paints were among the major winners.

Power Grid, Larsen & Toubro, Tata Steel, and Infosys were among the laggards.

In Asian markets, South Korea’s Kospi jumped 6.24 per cent. Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index also ended higher, while Shanghai’s SSE Composite index settled lower. Markets in Europe were quoted lower. US markets ended higher on Tuesday.

“Domestic equities exhibited resilience, with broader markets outperforming large caps amid positive Asian cues,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.

Softer US inflation data supported sentiment, he added.

Broader markets advanced, with the BSE MidCap Select index climbing 0.59 per cent and the SmallCap Select index going up by 0.42 per cent.

Among sectors, Capital Goods jumped 1.27 per cent, PSU Bank (0.92 per cent), Mid-Small Private Banks Quality Tilt (0.83 per cent), Consumer Durables (0.76 per cent), Consumer Discretionary (0.66 per cent), Oil & Gas (0.63 per cent) and Top 10 Banks (0.55 per cent).

Utilities, FMCG, IT, Metal, Realty and Focused IT were the laggards.

A total of 2,297 stocks advanced, while 1,974 declined and 171 remained unchanged on the BSE.

“The market drew support from softer-than-expected US inflation data, which eased concerns over the Federal Reserve’s interest rate trajectory and improved global risk sentiment. However, renewed geopolitical tensions in the Middle East and caution ahead of key quarterly earnings limited the upside and kept investors from taking aggressive positions,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

Brent crude, the global oil benchmark, went up 0.90 per cent to $85.50 per barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 739.69 crore on Tuesday, according to exchange data.

On Tuesday, the Sensex tanked 561.46 points, or 0.72 per cent, to settle at 77,054.94. The Nifty dropped 158.95 points, or 0.66 per cent, to end at 24,052.05.