Sensex and Nifty recover after sharp fall
Mumbai: Equity benchmark indices Sensex and Nifty rebounded in early trade on Wednesday, supported by value buying after a sharp decline in the previous session. The recovery, however, remained limited amid elevated oil prices, foreign fund outflows and caution ahead of the US Federal Reserve’s policy decision.
The 30-share BSE Sensex gained 244.02 points to reach 74,293.25, while the NSE Nifty rose 77.20 points to 23,201.85 in early trade.
M&M, Reliance among major gainers
Among the 30 Sensex companies, Mahindra & Mahindra, Reliance Industries, Hindustan Unilever, HCL Tech, ITC and State Bank of India were among the major gainers. InterGlobe Aviation, Tata Steel, Tata Consultancy Services and Eternal were among the stocks trading lower. Brent crude, the global oil benchmark, was trading 0.63 per cent lower at USD 108.10 per barrel.
Asian markets trade higher
Most major Asian markets were trading in positive territory, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng showing gains. US markets, however, ended lower on Tuesday.
Fed decision remains key trigger
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said the market recovery could remain fragile as Brent crude stays near USD 108 a barrel and global bond yields remain elevated. He said the Federal Reserve’s policy decision would be a key trigger for markets. According to Radhakrishnan, the Fed’s guidance on future monetary policy could influence the dollar, global equities, the rupee and foreign investment flows.
FIIs continue selling
Foreign Institutional Investors (FIIs) sold equities worth ₹2,977.86 crore on Tuesday, according to exchange data. On Tuesday, the Sensex had plunged 777.94 points, or 1.04 per cent, to close at 74,003.82, its lowest level in three months. The Nifty also declined 279.50 points, or 1.19 per cent, to settle at 23,118.60, its lowest closing level since April 6.
