Reliance, auto stocks lead in Sensex, Nifty strong recovery
EDGING UP. Positive macro economic indicators, buying by foreign institutional investors boost sentiment
BSE Sensex and NSE Nifty50 settled over 0.5 per cent higher on Wednesday on the back of investor interest in Reliance Industries, auto and financial stocks; while the fall in IT majors capped the upside for the benchmarks at the end of a rangebound trade.
Besides the positive macro economic indicators, buying by foreign institutional investors (FIIs) gave a boost to the indices as they purchased equities worth ₹2,170.32 crore, show exchange’s provisional data.
However, amid monthly derivatives expiry, and financial yearend, market experts cautioned investors about impending volatility tomorrow.
While the Sensex gained 526.01 points, or 0.73 per cent, to 72,996.31, the broader Nifty50 advanced 118.95 points, or 0.54 per cent, to 22,123.65.
In the broad market, BSE 500 ended 0.41 per cent higher, BSE SmallCap gained 0.7 per cent but MidCap closed flat.
Within the Nifty pack, Reliance Industries (3.49 per cent), Maruti Suzuki India (2.53 per cent), Bajaj Auto (2.16 per cent) and Bajaj Finance (1.72 per cent) and Titan (1.62 per cent) were the major gainers.
EYE ON FIIS’ MOVES
According to Ruchit Jain, Lead Research, 5paisa.com, Nifty
Among the Nifty50 stocks, Reliance Industries gained 3.49 per cent to ₹2,985.70. During the day, the stock hit a high of ₹3,000
has consolidated within a range in last couple of sessions but the bias seems positive as the intraday declines are witnessing buying interest.
“FII’s had majority of their positions on the short side in the March series, but it will be
important to see how they roll over their positions ahead of another long weekend. In the options segment, 22,000 put options have decent open interest outstanding which would be seen as the important support on the expiry day, while the 61.8 per cent retracement of the recent correction at 22,220 is the immediate hurdle,” Jain added.
SMALL-CAPS REBOUND
According to Vinod Nair, Head of Research, Geojit Financial Services, stockspecific actions and positive undercurrents due to a healthy economic growth forecast led the market towards a positive closure.
“However, due to the holidayled truncated week, investors are now focusing on US GDP data tomorrow and next week’s RBI policy announcement to gauge market direction. The mid and smallcap space are outperforming as investors got bargaining opportunities, but volumes are low,“Nair added.