The Sensex made a smart rebound in the afternoon trade on Wednesday, ably assisted by a rally in bluechips Reliance Industries and HDFC twins to reclaim the crucial 39,000-mark.
The Sensex made a smart rebound in the afternoon trade on Wednesday, ably assisted by a rally in bluechips Reliance Industries and HDFC twins to reclaim the crucial 39,000 points. The Sensex closed 490-points higher at 39,054.68, while the Nifty ended 1.3% higher at 11,726. We take a look at key factors behind this rally.
US stock markets at records
The US markets were upbeat on Tuesday, and the S&P 500 inched towards a record high on Tuesday, as better-than-expected quarterly results eased concerns of slowing corporate profits and sparked a broad-based rally. The S&P and Nasdaq indexes breached their record closing highs during the session. Traders told PTI that market sentiment turned positive as investors took positive cues from US equities.
Easing crude oil price
Oil prices eased from 6-month highs on Wednesday amid signals that global markets remain adequately supplied. on United States’ push for tighter sanctions against Iran. Brent crude futures were at $74.24 per barrel at 0058 GMT, lower by 27 cents, or 0.4 percent, from their last close. US West Texas Intermediate (WTI) crude futures were at $66.02 per barrel, down 28 cents from their previous close.
Bank stocks jump
Banking stocks surged in trade on Wednesday afternoon, with Nifty Bank index rising 1.3%, with SBI, Yes Bank, HDFC Bank, IndusInd Bank and PNB among top gainers. Among the other top gainers were Bharti Airtel, HDFC, HDFC Bank, RIL, Bajaj Finance, SBI, TCS, Infosys, ICICI Bank and ITC too rose up to 2.75 per cent.
IT, FMCG in focus
“Nifty tested all time high levels recently after which some correction was seen. Broader sentiment has turned neutral indicating possibility of some consolidation/correction in the near term. Expect Nifty to remain under pressure unless 11860 is crossed with momentum pick up seen. IT and FMCG stocks are expected to remain in focus,” Sahaj Agrawal, DVP Derivatives, Kotak Securities said.