Nifty has to close above 7,900 for the upmove to continue
We had mentioned in Tuesday’s closing report that Nifty, Sensex may be headed lower for the next few days and that Nifty looks set for a fresh decline unless it closes above 7,900. Nifty went down sharply in the morning but attractive valuations and bargain hunting pushed the Indian stock market indices a little higher by close.
The Indian stock markets again came under pressure during the initial trade on Wednesday, as weak Asian cues emanating out of a below-expected Chinese PMI (purchasing managers' index) data spooked investors. However, attractive valuations in banking, consumer durables and information technology (IT) sectors helped the markets pare its initial losses. Furthermore, value buying was observed among investors in the stock market. Market observers pointed out that the sharp downward corrections on Tuesday due to weak European cues have cheapened stocks and prompted value buying.
All interest-sensitive stocks like banking, automobile and capital goods made substantial gains on hopes of a rate cut by the Reserve Bank of India (RBI) during its upcoming monetary policy review slated for September 29.
Sector-wise, banking, consumer durables, healthcare, oil and gas and information technology (IT) stocks supported the market recovery.
Notwithstanding the positive trend, power and technology, entertainment and media (TECK) sector came under intense selling pressure.
The S&P BSE banking index rose by 283.82 points, consumer durables index gained by 172.48 points, healthcare index increased by 121.55 points, oil and gas index rose by 86.18 points, and IT index was higher by 40.29 points.
The S&P BSE power index fell by 5.59 points and TECK index slipped by 1.67 points.
Major Sensex gainers during Wednesday's trade were: Lupin, up 2.83% at Rs.1,921.30; Vedanta, up 2.71% at Rs.94.85; HDFC Bank, up 2.17% at Rs.1,049.95; Mahindra and Mahindra (M&M), up 2.10% at Rs.1,211.75; and ITC, up 1.28% at Rs.316.05.
The major Sensex losers were: Tata Motors, down 1.73% at Rs.310.20; Bharti Airtel, down 1.49% at Rs.338.10; BHEL, down 1.24% at Rs.199.15; GAIL, down 0.86% at Rs.287.25; and Bajaj Auto, down 0.79% at Rs.2,240.25.
The top gainers and top losers among major indices in the Indian stock market are given in the table below:
The closing values of the major Asian indices are given in the table below: