Buying in frontline blue chip counters supported domestic benchmark indices on Wednesday ahead of F&O expiry on August 25. BSE Sensex closed 69.73 points up at 28058.94, while NSE Nifty settled 17.70 points higher at 8,650.30. Market sentiments were upbeat with rating agency Ind-Ra revising India’s economic growth forecast to 7.8 per cent for the ongoing financial year on better monsoon. It has said the positive impact of monsoon on agriculture will support the overall GDP growth with its backward and forward linkages.
Among the 51 components in the NSE Nifty index, 24 stocks ended the day in green with Aurobindo Pharma shares surging the most — 6.91 per cent, followed by Tata Power (2.47 per cent), Maruti Suzuki (up 2.22 per cent), Cipla (up 2.02 per cent) and Zee Entertainment (up 1.59 per cent). On the other hand, Idea Cellular, Lupin, Ambuja Cement, Tata Motors DVR and Tata Steel dipped by 2.97 per cent, 2.31 per cent, 1.81 per cent, 1.65 per cent and 1.51 per cent, respectively.
Barring the BSE Telecom (down 0.34 per cent), Metal index (down 0.22 per cent) and Capital Goods index (down 0.01 per cent) on the BSE, rest all other sectoral indices ended in green. The BSE Oil & Gas index, BSE Healthcare index and BSE Power index gained 1.49 per cent, 1.30 per cent and 0.69 per cent, respectively.
Vinod Nair, head of research, Geojit BNP Paribas Financial Services said, “The market was volatile within a narrow range and closed in a positive note ahead of the derivative expiry tomorrow. Global markets were mixed due to uncertainty over the upcoming speech by the chair of the Fed, Janet Yellen this Friday, which will provide signs of a possibility of a rate hike in the Sept FOMC meet.”
In a stock specific development, Welspun India shares hit lower circuit for the third consecutive day on Wednesday as investors continued to remain concerned about its stocks following US-based Target Corp ending business contract with the company over quality of the cotton used in bed sheets. Shares of Welspun India plungede 9.95 per cent to Rs 59.30.
Other Asian peers settled mostly lower on Wednesday, ahead of Federal Reserve Chairwoman Janet Yellen’s speech later this week. Shanghai and Hang Seng closed lower by 0.12 per cent and 0.77 per cent, while Nikkei settled higher by 0.61 per cent.