Indian headline equity indices Sensex and Nifty50 traded higher on Wednesday, rebounding from a 1% drop in the previous session, led by gains in banking, auto, and IT stocks. However, concerns over foreign fund outflows may limit further upside.
At around 10:43 am, the BSE Sensex was up 814 points, or 0.87%, at 82,000, while the Nifty50 rose 240 points, or 0.98%, to trade at 24,924.
The market capitalisation of all listed companies on BSE surged by Rs 3.64 lakh crore to Rs 441.67 lakh crore.
From the Sensex pack, Sun Pharma, Maruti Suzuki, HDFC Bank, HUL, Tata Motors, ICICI Bank, and Tech Mahindra were among the top gainers, rising up to 1.5%. On the other hand, Eternal, IndusInd Bank, Adani Ports, Kotak Bank, and NTPC opened with cuts.
Among individual stocks, Ircon International rose 3% after announcing it had secured a Rs 253.6 crore contract from South Western Railway to implement KAVACH, an indigenous train collision avoidance system.
Shares of United Breweries Ltd (UBL) jumped 2.3% after the company entered a leasing agreement with Ilios Breweries Pvt. Ltd. to expand its manufacturing capacity in Andhra Pradesh.
On the sectoral front, Nifty Auto, Bank, FMCG, Pharma, and Realty indices opened up to 1.5% higher, while Consumer Durables and Oil & Gas slipped up to 0.7%.
Meanwhile, the Nifty50 and BSE Sensex slipped on Tuesday as foreign portfolio investors offloaded shares worth Rs 10,016 crore ($1.2 billion), according to provisional data — the largest single-day outflow since February 28.
The selloff was likely triggered by rising bond yields in the United States and Japan, along with the stretched valuations of Indian equities.
U.S. bond yields edged higher overnight on concerns that a tax-cut bill being debated in Congress will worsen the budget deficit, while long-dated Japanese government bond yields eased after hitting record highs on Tuesday amid concerns over funding for new fiscal stimulus.
Experts View
"Spike in uncertainty and risk is impacting the market rather unexpectedly. Yesterday’s FII sell figure of Rs 10016 crores is a major reversal of their big buying in May, and if this persists, it has the potential to impact the market," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
"What caused this sudden reversal in FII activity? A combination of many factors may be responsible: credit rating downgrade of US sovereign debt and the consequent spike in US bond yields, spike in Japanese Govt Bond yields, rising COVID cases in some parts of India and reports of a possible Israel attack on Iran are doing the rounds. Investors can wait and watch for the events to unfold," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "A sustained move above the 24,700 level could reignite bullish momentum, potentially pushing the index higher toward the 24,850–25,000 range. On the downside, immediate support is visible at 24,500 and 24,350, which could serve as attractive accumulation zones for long positions if tested."
Global Markets
Asian equities edged higher on Wednesday, with risk appetite contained by elevated bond yields as investors remained nervous about the fiscal outlook of major developed economies and the lack of progress on fresh trade deals.
In stocks, China's blue-chip index was muted in early trading, while Hong Kong's Hang Seng Index rose 0.58%.
The MSCI's broadest index of Asia-Pacific shares outside Japan crept up 0.5%, while Japan's Nikkei was down 0.18%.
In Europe, STOXX 50's futures were steady while FTSE 100 futures were muted, with caution setting in ahead of a consumer inflation report expected later in the day out of the United Kingdom.
FII/DII Tracker
Foreign Institutional Investors (FIIs) were net sellers of equities worth Rs 10,016 crore on May 21, signalling cautiousness ahead of key events. Meanwhile, Domestic Institutional Investors (DIIs) provided some support with net purchases of Rs 6,738 crore.
Crude Oil
Oil prices jumped more than 1% on Wednesday after reports that Israel is preparing a strike on Iranian nuclear facilities, raising fears that a conflict could upset supply availability in the key Middle East producing region.
Brent futures for July rose 97 cents, or 1.5%, to $66.35 a barrel by 0330 GMT. U.S. West Texas Intermediate crude futures for July climbed 96 cents, or 1.6%, to $62.99. The June WTI contract expired on Tuesday at $62.56.
Rupee vs Dollar
The Indian rupee fell 9 paise to 85.67 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.49% to 99.63 level.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
At around 10:43 am, the BSE Sensex was up 814 points, or 0.87%, at 82,000, while the Nifty50 rose 240 points, or 0.98%, to trade at 24,924.
The market capitalisation of all listed companies on BSE surged by Rs 3.64 lakh crore to Rs 441.67 lakh crore.
From the Sensex pack, Sun Pharma, Maruti Suzuki, HDFC Bank, HUL, Tata Motors, ICICI Bank, and Tech Mahindra were among the top gainers, rising up to 1.5%. On the other hand, Eternal, IndusInd Bank, Adani Ports, Kotak Bank, and NTPC opened with cuts.
Among individual stocks, Ircon International rose 3% after announcing it had secured a Rs 253.6 crore contract from South Western Railway to implement KAVACH, an indigenous train collision avoidance system.
Shares of United Breweries Ltd (UBL) jumped 2.3% after the company entered a leasing agreement with Ilios Breweries Pvt. Ltd. to expand its manufacturing capacity in Andhra Pradesh.
On the sectoral front, Nifty Auto, Bank, FMCG, Pharma, and Realty indices opened up to 1.5% higher, while Consumer Durables and Oil & Gas slipped up to 0.7%.
Meanwhile, the Nifty50 and BSE Sensex slipped on Tuesday as foreign portfolio investors offloaded shares worth Rs 10,016 crore ($1.2 billion), according to provisional data — the largest single-day outflow since February 28.
The selloff was likely triggered by rising bond yields in the United States and Japan, along with the stretched valuations of Indian equities.
U.S. bond yields edged higher overnight on concerns that a tax-cut bill being debated in Congress will worsen the budget deficit, while long-dated Japanese government bond yields eased after hitting record highs on Tuesday amid concerns over funding for new fiscal stimulus.
Experts View
"Spike in uncertainty and risk is impacting the market rather unexpectedly. Yesterday’s FII sell figure of Rs 10016 crores is a major reversal of their big buying in May, and if this persists, it has the potential to impact the market," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
"What caused this sudden reversal in FII activity? A combination of many factors may be responsible: credit rating downgrade of US sovereign debt and the consequent spike in US bond yields, spike in Japanese Govt Bond yields, rising COVID cases in some parts of India and reports of a possible Israel attack on Iran are doing the rounds. Investors can wait and watch for the events to unfold," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "A sustained move above the 24,700 level could reignite bullish momentum, potentially pushing the index higher toward the 24,850–25,000 range. On the downside, immediate support is visible at 24,500 and 24,350, which could serve as attractive accumulation zones for long positions if tested."
Global Markets
Asian equities edged higher on Wednesday, with risk appetite contained by elevated bond yields as investors remained nervous about the fiscal outlook of major developed economies and the lack of progress on fresh trade deals.
In stocks, China's blue-chip index was muted in early trading, while Hong Kong's Hang Seng Index rose 0.58%.
The MSCI's broadest index of Asia-Pacific shares outside Japan crept up 0.5%, while Japan's Nikkei was down 0.18%.
In Europe, STOXX 50's futures were steady while FTSE 100 futures were muted, with caution setting in ahead of a consumer inflation report expected later in the day out of the United Kingdom.
FII/DII Tracker
Foreign Institutional Investors (FIIs) were net sellers of equities worth Rs 10,016 crore on May 21, signalling cautiousness ahead of key events. Meanwhile, Domestic Institutional Investors (DIIs) provided some support with net purchases of Rs 6,738 crore.
Crude Oil
Oil prices jumped more than 1% on Wednesday after reports that Israel is preparing a strike on Iranian nuclear facilities, raising fears that a conflict could upset supply availability in the key Middle East producing region.
Brent futures for July rose 97 cents, or 1.5%, to $66.35 a barrel by 0330 GMT. U.S. West Texas Intermediate crude futures for July climbed 96 cents, or 1.6%, to $62.99. The June WTI contract expired on Tuesday at $62.56.
Rupee vs Dollar
The Indian rupee fell 9 paise to 85.67 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.49% to 99.63 level.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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