Sensex rebounds on FII buying, gains 244 points

The benchmark BSE Sensex on Wednesday gained 244 points, or 0.8 per cent, to close at 31,955 after metal, health care and FMCG (fast-moving consumer goods) stocks set the tone on the back of betterthan-expected corporate earnings so far. Foreign dollar inflows and positive global cues kept the risk appetite on.

The market opened positive on overnight earnings numbers of FMCG major Hindustan Unilever coupled with a firming trend in Asia, tracking another record close at the Wall Street.

The Sensex had retreated from record by plunging 364 points in the previous session.

The 50-share NSE’s Nifty stayed in the positive zone and reclaimed the 9,900-mark to hit a high of 9,905.05, as buying gained pace towards the fag end. It settled higher 72.45 points, or 0.74 per cent, at 9,899.60.

Bharti Airtel stole the show by climbing 3.21 per cent, while Dr Reddy’s Laboratories surged 2.01 per cent.

“The pharma sector outperformed followed by a series of US FDA approvals, which offered a bargaining opportunity to investors. US President Donald Trump’s failure to repeal Obamacare and a strengthening rupee will keep the outlook intact,” said Vinod Nair, head of research at Geojit Financial Services.

Coal India, Tata Consultancy Services, Sun Pharmaceutical Industries and Kotak Bank also contributed to the upmove, rising by up to 2.66 per cent.

Shares of Hindustan Petroleum Corporation, Indian Oil Corporation, Bharat Petroleum Corporation and Oil and Natural Gas Corporation buzzed with activity, largely on the back of merger talks, which recorded a rise of up to 4.14 per cent. Hindustan Unilever, whose net profit grew 9 per cent, succumbed to profitbooking at higher levels and finished in the red.

Tobacco stocks, led by ITC, were back in a better shape on value buying, a day after a steep fall in the wake of higher cess. ITC rebounded 2.42 per cent, helping the key indices recoup most of its Tuesday’s lost ground. VST, too, recovered 1.22 per cent, while Godfrey Phillips rose 0.71 per cent.

According to provisional data provided by the bourses, foreign investors bought shares worth over ~1,000 crore on Wednesday, even as domestic institutions remained marginal net sellers.

Market players said the spurt in FII buying was on the back of weakening in the dollar against major global currencies. The dollar index is at its lowest level in 10-months.

Elsewhere, Asian markets were mostly higher, as investors turned their focus to policy meetings by central banks in Japan and the European Union. Besides, Europe was trading in the green.

The BSE metal rose the most by 1.95 per cent, followed by health care 1.78 per cent, realty 1.50 per cent and FMCG 1.49 per cent. Mid-cap and small-cap indices firmed up 1.01 per cent and 0.99 per cent, respectively.