Mumbai, June 24: Benchmark equity indices Sensex and Nifty rebounded sharply by around 1 per cent on Wednesday, propelled by softening crude oil prices and hectic buying in bank, financial and IT shares.
Besides, growing expectations of an India-US trade deal and foreign funds turning net buyers in the domestic market supported the firm trend in equities, traders said. The 30-share BSE Sensex jumped 790.54 points, or 1.04 per cent, to settle at 76,991.22. During the day, it surged 989.69 points, or 1.29 per cent, to 77,190.37.
A total of 2,215 stocks advanced, while 2,034 declined and 181 remained unchanged on the BSE. The 50-share NSE Nifty climbed 197.55 points, or 0.83 per cent, to end at 24,021.65.
From the Sensex pack, InterGlobe Aviation, Trent, Tech Mahindra, Bajaj Finance, ICICI Bank, Infosys, HDFC Bank and Tata Consultancy Services were among the major winners.
In contrast, NTPC, Tata Steel, Maruti and Bharat Electronics were among the laggards. The BSE SmallCap Select index edged higher by 0.44 per cent, and the MidCap Select index went up by 0.32 per cent.
Sectorally, the BSE Private Banks index climbed 2.21 per cent, Realty (2.17 per cent), Services (2.14 per cent), IT (1.81 per cent), Bankex (1.78 per cent), Focused IT (1.68 per cent) and MidSmall Private Banks Quality Tilt (1.64 per cent).
Industrials, Telecommunication, Utilities (0.79 per cent), and Power were among the laggards.
Foreign Institutional Investors (FIIs) bought equities worth Rs 17.86 crore on Tuesday, according to exchange data.
World shares were mixed Wednesday following a sell-off in big technology stocks from Asia to Wall Street.
US stock futures were also trading mixed, as global investors monitor market movements including in Japan and South Korea, which have seen big gains in recent months on the global AI boom but both fell sharply on Tuesday.
In early European trading, Britain’s FTSE 100 edged down 0.1 per cent to 10,417.97. Germany’s DAX fell 0.8 per cent to 24,687.18, while France’s CAC 40 was 0.2 per cent higher at 8,355.36.
In Asia, South Korea’s benchmark Kospi index was up 3.3 per cent to 8,471.02, recovering from its 10 per cent decline on Tuesday. Shares of memory chipmaker SK Hynix, one of the country’s most valuable stocks, climbed 1 per cent. Samsung Electronics jumped 9.8 per cent, after Tuesday’s 12.3 per cent plummet.
Tokyo’s Nikkei 225 lost 0.9 per cent to 69,174.97 after falling 3.6 per cent on Tuesday. Taiwan’s Taiex, which is also heavily influenced by tech shares, fell 2.2 per cent.
Hong Kong’s Hang Seng was 0.3 per cent higher at 23,412.18. The Shanghai Composite index was up 0.1 per cent to 4,110.81. Australia’s S&P/ASX 200 edged up 0.2 per cent to 8,808.40.
The declines in Asian markets, including Japan’s, followed Tuesday’s 1.4 per cent drop for Wall Street’s benchmark S&P 500 index. The technology-heavy Nasdaq composite fell 2.2 per cent, while the Dow Jones Industrial Average ended 0.1 per cent lower.
Big Tech and semiconductor stocks fell in the US on Tuesday, Micron Technology sank 13.2 per cent, while Nvidia lost more than 4.1 per cent. Oil prices fell early Wednesday, as more ships crossed the Strait of Hormuz while US-Iran talks on a permanent end to the Iran war made progress.
Still, while vessel crossings in the strait increased in recent days, they remained well below prewar levels, they noted.
Brent crude, the international standard, fell 1.6 per cent to USD 75.57 a barrel. It has been trading below USD 80 in recent days but is still elevated compared with the approximately USD 70 per barrel in late February before the war began.
Benchmark US crude was down 1.8 per cent to USD 71.92 a barrel. In the US, investors are awaiting a report due Thursday of May’s personal consumption expenditures price index, or PCE, which is the preferred inflation gauge by the Federal Reserve. Some economists predict the Fed may hold key interest rate this year but is unlikely to raise rates. Bond yields have remained higher as inflation concerns grew amid global energy shocks.
In other dealings, the US dollar was trading at 161.74 Japanese yen, up from 161.55 yen. The euro was trading at USD 1.1347, down from USD 1.1382.
On Tuesday, the Sensex tanked 893.39 points, or 1.16 per cent, to settle at 76,200.68. The Nifty dropped 278.80 points, or 1.16 per cent, to end at 23,824.10. (PTI)
