Equity markets staged a modest recovery on Wednesday morning, reversing earlier losses on the back of foreign institutional inflows and buying support in blue-chip counters such as Reliance Industries and ICICI Bank.
The 30-share BSE Sensex, which had opened weak, advanced by 93.05 points to reach 81,676.35 in early trade. Its broader peer, the NSE Nifty, rose 42.80 points to 24,896.20. Later, the Sensex extended its gains to trade 228.13 points higher at 81,812.04, while the Nifty climbed 82.25 points to 24,937.70.
Among the Sensex constituents, IndusInd Bank, Mahindra & Mahindra, Maruti, Titan, Tech Mahindra, HCL Technologies, Reliance Industries and ICICI Bank emerged as key gainers. Conversely, Kotak Mahindra Bank, Power Grid, NTPC and Adani Ports saw selling pressure.
The recovery was supported by foreign portfolio investor activity. Data from the exchanges showed Foreign Institutional Investors (FIIs) bought equities worth ₹1,482.77 crore on Tuesday. Domestic Institutional Investors (DIIs) were also net buyers, having purchased shares worth ₹8,207.19 crore.
Also read: Stock markets drop amid Middle East clash
Commenting on the market trend, V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “It is important to understand that after the Covid crash which took the Nifty to a low of 7,511 in March 2020 we are in a bull market which has been climbing all walls of worries. The market is likely to climb this Israel-Iran conflict worry, too. Despite the high valuations, particularly in the broader market, the market is likely to remain resilient supported by sustaining strong liquidity and hopes of turn around in earnings.”
In the international markets, the performance remained mixed. Japan’s Nikkei 225 and South Korea’s Kospi were trading in positive territory, while Shanghai’s Composite Index and Hong Kong’s Hang Seng were under pressure.
On Wall Street, major US indices ended Tuesday’s session in the red.
In commodities, Brent crude, the global oil benchmark, rose 0.44 per cent to trade at USD 76.79 per barrel.
On Tuesday, the BSE Sensex had declined by 212.85 points or 0.26 per cent to end at 81,583.30. The Nifty had settled 93.10 points lower at 24,853.40.
Follow us
