After a day’s hiatus, Dalal Street took its winning streak to the fourth session on Wednesday as the benchmark indices were able to extend their gains, ignoring dull global cues. Strong quarterly updates from the index heavyweights, order wins and windfall tax cut pushed the headline peers higher.
The muted US jobs data did not impact the traders’ sentiments at Dalal Street. However, the health of the global economy and the resulting future path of interest rates remain key focus for investors. Economic data and earnings for the March quarter will decide the direction of Dalal Street in the coming days.
For the day, the 30-share pack BSE Sensex surged 582.87 points, or 0.99 per cent, to 59,689.31, whereas NSE’s Nifty50 rallied 159 points or 0.91 per cent to settle at 17,557.05. BSE’s midcap index underperformed but smallcap index advanced about per cent. Fear gauge India VIX eased more than a per cent to 12.41-mark.
In the intraday session, after the gap-up opening, The Nifty traded above 17,450 after making a day low of 17,450. The market remains up throughout the day, said Rohan Shah, head technical analyst at Stoxbox.
“Intraday traders can look for long opportunities only above the resistance level of 17,600 if the closing comes above 17,600 in the 15 min chart. Traders can look for fresh shorts only if nifty breaks the 17,350 level and remains below for 15 min to ensure a short,” he said.
On the sectoral front, only Nifty Auto and PSU Bank indices settled with cuts. Among the gainers, Nifty Financial Services, Nifty FMCG and IT indices rose more than a per cent each. Nifty Consumer Durables, Pharma and Media indices gained about a per cent each.
In the Nifty50 pack, Larsen & Toubro gained more than 4 per cent after its hydrocarbon business bagged another ‘mega’ order from the Middle East. HDFC Twins rose 3 per cent, each, after the updates for the March 2023 quarter. ITC, Hindustan Unilever, Grasim and Sun Pharmaceuticals rose 2 per cent each.
The domestic market is displaying resilience, unaffected by the weaker global peers, thanks to strong banks and NBFCs quarterly numbers and the windfall tax cut, said Vinod Nair, Head of Research at Geojit Financial Services.
“The recent US data revealed a softening in the labour market and declining factory orders, increasing the likelihood of a pause in rate hikes by the Federal Reserve. The RBI is expected to announce a 25-basis point rate hike in its policy announcement on Thursday before taking a pause, positive for the market,” he said.
On the downside, Eicher Motors dropped more than 2 per cent after muted sales numbers. Mahindra & Mahindra also dropped more than a per cent after its sales for the period ended on March 31, 2023. IndusInd Bank, NTPC and Adani Enterprises also settled a per cent lower each.
A total of 3,654 shares were traded on BSE on Wednesday, of which 2,587 settled with gains. 949 stocks ended the session lower, while 118 shares remained unchanged. A total of 514 shares hit their upper circuit, whereas 79 tested the lower circuit levels for the day.
In the broader markets, Jindal Drilling & Industries, Black Rose Industries, Kaya Nandan Denim and Ruby Mills hit their upper circuits of 20 per cent, each. Nykaa and GHCL rose 8 per cent, while LTTS and Cyient advanced 6 per cent, each.
On the downside, Ahluwalia Contracts (India) and Kaynes Technologies dropped 5 per cent, each, while Capri Global Capital, SVP Global and Aditya Birla Fashion and Retail declined 4 per cent, each.
Also read: Atul Auto shares: Why three-wheeler stock gained 29% in four sessions
Also read: These 11 smallcap, midcap stocks in LIC’s portfolio jumped the most in FY23; own any?