Strong buying in tech and FMCG counters lifted Indian equities higher by close to 1% on Wednesday, a day before the Reserve Bank of India (RBI) announces its key policy rates.
The benchmark Sensex rose 582.87 points or 0.99% to close at 59,689.31. In the two sessions of April so far, the index has climbed by almost 700 points or 1.18%. In the last four sessions since March 28, it has risen 2,075 points or 3.6%. The BSE TECK and FMCG indices gained 0.92% and 1.35%, respectively.
Bellwether company TCS gained 1.17% while Infosys, Wipro and Tech Mahindra also closed in the green.
“Global stocks mostly fell as hawkish messages from New Zealand and Australian central banks signalled a prolonged fight against inflation and revived concerns about a deeper economic slowdown. Signs of a slowing US labour market also made investors nervous about the economic outlook,” said a note by HDFC Securities.
Market breath was positive, with 2,556 stocks advancing to 992 declining.
Shares of Nykaa jumped 7.86% on reports of 5.54 million shares changing hands in block deals worth Rs 75 crore. The identity of the buyers and sellers couldn’t be ascertained as of press time.
In a Q4FY23 revenue update to the exchanges, the company said it has continued to display healthy revenue growth, coming on the back of sustained consumption among Tier-1 consumers.
It added that for FY23, it expects percentage revenue growth to be in line with 9MFY23, that is in the early-thirties.
However, it pointed out that consumer pullback in discretionary spends has had some impact on the fashion business, leading to subdued growth in net sales value this quarter.
Similarly, the broader Nifty50 rose 159 points or 0.91% to 17,557.05. The index has gained close to 200 or 1.14% in April so far, and by 605 or 3.57% since March 28.
L&T led the gains, rising 4.09%, with the HDFC twins raking up gains close to 3% each. ITC and Unilever, too, gained in the region of 2%. Auto stocks were major laggards, with Eicher losing more than 2% and M&M down 1.35%. Maruti Suzuki was also down 0.55%.
While FIIs were net buyers, pumping in Rs 806.82 crore, DIIs turned net sellers, withdrawing Rs 947.21 crore from the market.
“Domestic indices traded in positive territory throughout the day, despite mixed global cues, on back of healthy macro data. Manufacturing PMI hit 3-month high to 56.4 in March, indicating strong demand. Additionally, net direct tax collections have exceeded Union Budget estimates by 17%, further confirming robust economic growth,” said Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services.
“While the trend looks positive, an upside could be limited, given the sharp rise of 3% in Nifty in past four days and the big event of RBI policy outcome on Thursday. After a long period, mid-caps have shown momentum, hence, action could be seen in the broader markets,” he added.