Among top Sensex gainers were Axis Bank, which rose 6.6%, followed by Bajaj Finserv, HDFC, Bajaj Finance, ITC, IndusInd Bank and State Bank of India.
Headline indices BSE Sensex and Nifty 50 ended the first day of the July-September quarter on a positive note, rising nearly 1.5 per cent each, led by gains in bank and financial stocks. The 30-share index Sensex jumped 499 points or 1.43 per cent to end the Wednesday’s session at 35,414.45, while the broader Nifty 50 index settled 128 points or 1.24 per cent higher at 10,430. Market breadth remained in favour of bulls. For every three gainers, there were a couple of losers. Index heavyweights such as HDFC, Reliance Industries, HDFC Bank, ICICI Bank and ITC contributed the most to the indices’ gains today. “Benchmark indices gained strength on the back of data showing that economic activity may be stabilizing. The Nikkei PMI survey indicated that although activity contracted in June, it was at a much slower pace as compared to May month. This gives rise to the hope that the economy may be emerging out of one its worst periods in recent times,” said Vinod Nair, Head of Research at Geojit Financial Services.
Axis Bank jumps 6.5%: Among top Sensex gainers were Axis Bank, which rose 6.6%, followed by Bajaj Finserv, HDFC, Bajaj Finance, ITC, IndusInd Bank and State Bank of India, all up in the range of 3.5-5.6 per cent. On the other hand, out of 30 Sensex stocks, 16 scrips finished in the negative territory. NTPC, M&M, L&T, Nestle India, ONGC and Sun Pharma were among top laggards on the pack.
Nifty PSU Bank index gains over 3%: The trend among Nifty sectoral indices was largely positive with Nifty PSU Bank and Nifty Financial Service as top sectoral gainers, up 3.63 per cent and 2.66 per cent, respectively. On the flip side, Nifty Pharma index declined more than 1 per cent and Nifty Realty index fell 0.72 per cent.
Broader market: The broader market underperformed the benchmark indices. S&P BSE Midcap rose 0.18 per cent or 23 points to end at 13,078, while S&P BSE Smallcap settled at 12,429, up 48 points. “Nifty has been consolidating for the past few sessions and a close above 10400 is expected to invite momentum in the broader markets,” said Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities.
Coronavirus cases rise: As India entered unlock phase 2, the total coronavirus cases surpassed the 5.85 lakh-mark with the death toll at 17,400. Continuous rise in COVID-19 cases is increasingly causing caution among investors.
Market outlook for Thursday: “Amid the mixed signals, we feel the upside could remain capped and traders should continue with positive yet cautious stance. We reiterate that the performance of the banking pack would play a critical role in the next directional move as other sectors, by and large, have done their part,” said Ajit Mishra, VP – Research, Religare Broking Ltd.