Sensex, Nifty surge nearly 1 pc on buying in IT stocks, firm global cues – ThePrint – PTIFeed

Mumbai, Jan 29 (PTI) Stock market benchmark indices Sensex and Nifty surged nearly 1 per cent on Wednesday, buoyed by a rally in IT, capital goods and industrial stocks amid a firm trend in global markets.

However, unabated selling by foreign investors ahead of the Union Budget kept market sentiment extremely cautious, traders said. The 30-share BSE benchmark Sensex jumped 631.55 points or 0.83 per cent to settle at 76,532.96. During the day, it jumped 698.32 points or 0.92 per cent to 76,599.73.

As many as 2,978 stocks advanced while 1,011 declined and 93 remained unchanged on the BSE.

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The NSE Nifty soared 205.85 points or 0.90 per cent to 23,163.10.

“The Indian market has demonstrated resilience in anticipation of the upcoming Union Budget, with expectations of measures, aimed at stimulating consumption and job creation. Investors are now focusing on the upcoming FOMC meeting, with general expectations that the Fed will maintain its current hawkish stance,” Vinod Nair, Head of Research, Geojit Financial Services, said.

From the 30-share blue-chip pack, Zomato jumped nearly 7 per cent. Tata Motors, Infosys, UltraTech Cement, Tech Mahindra, Mahindra & Mahindra and Bajaj Finance were the other major gainers.

In contrast, ITC Hotels, Bharti Airtel, Maruti, Asian Paints and ITC were among the laggards.

The BSE smallcap gauge surged 3.28 per cent and the midcap index rallied 2.54 per cent.

“Most key sectors contributed to the recovery. However, the highlight of the session was the strong rebound in broader indices. Looking ahead, market participants will react to the US Fed meeting outcome in early Thursday trades, followed by the focus shifting to the January derivatives expiry,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

Among BSE sectoral indices, realty jumped 3.10 per cent, industrials (2.94 per cent), capital goods (2.70 per cent), IT (2.65 per cent), BSE Focused IT (2.63 per cent), commodities (2.30 per cent) and healthcare (2.20 per cent).

FMCG emerged as the only laggard.

In Asian markets, Seoul and Tokyo settled in the positive territory. Markets in Shanghai and Hong Kong were closed due to holidays.

European markets were trading mostly in the green. US markets ended higher on Tuesday.

“India VIX has seen a surge from 13 to 19 levels in the last five weeks and rising volatility created swings with negative bias in the market.

“FIIs Long Short Ratio is now at around 20 per cent, which is near the lower part of the range, but selling from FIIs in the cash market is the real cause of concern to get the market stability. Overall lower FIIs Index Long Short ratio indicates light position by foreign market players,” Motilal Oswal Financial Services said in a note.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,920.69 crore on Tuesday, according to exchange data.

Global oil benchmark Brent crude declined 0.93 per cent to USD 76.77 a barrel.

“Having lost around 3 per cent of its value so far in the month, Nifty looks on track to end January on a negative note to mark the fourth consecutive month of correction — an exceptionally rare occurrence that hasn’t been reported in the last 23 years.

“US Fed action, a slew of reforms in the budget and liquidity easing by the central bank will set the tone for the markets in the coming 2-3 months. The FII’s have been sellers almost to the tune of USD 1 bn even in January,” Jaykrishna Gandhi, Head – Business Development, Institutional Equities, Emkay Global Financial Services, said.

On Tuesday, the BSE benchmark Sensex climbed 535.24 points or 0.71 per cent to settle at 75,901.41. The Nifty went up by 128.10 points or 0.56 per cent to 22,957.25. PTI SUM SUM BAL BAL

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