Markets resume upward trend; IT, finance stocks sparkle
Mumbai: Equity indices found firmer ground on Wednesday, led by IT, finance and auto stocks, as investors tracked corporate results amid mixed cues from global markets.
After swinging over 330 points in a choppy session, the 30-share BSE Sensex ended 94.99 points, or 0.24 percent, higher at 39,058.83. It hit an intra-day high of 39,196.67 and a low of 38,866.08.
The broader NSE Nifty too advanced 15.75 points, or 0.14 percent, to settle at 11,604.10.
HCL Tech was the top gainer in the Sensex pack, rising 2.93 percent, ahead of its quarterly results.
Maruti Suzuki, SBI, HDFC and Hero MotoCorp gained up to 2.55 percent.
Infosys rebounded 1.16 percent after a massive sell-off in the previous session following a whistleblower complaint.
On the other hand, Bharti Airtel, Vedanta, ONGC, RIL, Kotak Bank and Yes Bank shed up to 3.59 percent.
"Markets largely remained positive throughout the day led by selective buying in large caps namely in banking and IT stocks. Auto and consumer stocks witnessed some resurgence on the expectation that the worst-case scenario is factored in the stock prices.
"Due to corporate tax cut, Q2 earnings growth is better, however, the market will review the outlook for revenue growth to assess any potential for re-rating," said Vinod Nair, Head of Research, Geojit Financial Services.
Sectorally, BSE auto, IT, consumer durables, power, FMCG, tech and finance indices rose up to 1.18 percent.
On the other had, BSE telecom, oil and gas, energy, realty, industrials, capital goods and metal indices tumbled up to 3.04 percent.
Broader BSE midcap index ended marginally lower, while BSE smallcap index advanced 0.25 percent.
Global equities were cautious after British Prime Minister Boris Johnson lost the crucial Brexit bill timetable vote on Tuesday, leaving in doubt his vow to exit the European Union by the end of the month.
Elsewhere in Asia, bourses in Shanghai, Hong Kong Tokyo and Seoul ended mixed.
Markets in Europe were also trading on a choppy note in their respective early deals.
Meanwhile, the Indian rupee appreciated marginally to 70.92 against the US dollar intra-day.
Brent crude futures, the global oil benchmark, fell 0.85 percent to USD 59.19 per barrel.
