Indian equity markets bounced back on Wednesday, ending their five-day losing streak, on the back of positive cues from Asian and European markets, coupled with fresh buying by investors. Dealers said they expect some tightening of the monetary policy soon from the Reserve Bank of India (RBI), if inflation is not tamed at this point of time, which might impact the market. The inflation figure, which will be declared on Thursday evening, is expected to exceed the 12.50%-mark, added dealers.
The 30-share Sensex of the Bombay Stock Exchange (BSE) gained 134.50 points or 0.92% and closed the day at 14,678.23 points. While the broader S&P CNX Nifty of National Stock Exchange (NSE) added 47.50 points or 1.09% before ending the day at 4,415.75 points.
Anita Gandhi, head, institutional business, Arihant Capital Markets said, ?We saw lot of genuine buying from retail investors in the market. Apart from that, there was a buzz in the markets that, the Bombay HC ruling on the dispute between Reliance Industries (RIL) and Reliance Natural Resources Ltd (RNRL) on Thursday will be in favour of RIL. It played a crucial role in improving market sentiments. I think that, if inflation surges ahead from this point, then, we may expect some tightening in the monetary policy by RBI.?
The Sensex opened the day with 14,610.57, touching an intra-day high of 14,746.20 points and a low of 14,584.03 points. Barring the FMCG sector among the BSE Sectoral indices, all the sectoral indices ended the day on a positive note. There was some buying in the stocks of the realty and power sectors, owing to which they were the top gainers in the sectoral indices.
The overall breadth of the market remained positive, as out of 2,718 stocks traded on the BSE, 1,666 stocks were in green, 969 in red, while 83 remained unchanged. In the Sensex too, 23 stocks advanced and seven stocks declined.