By Siddhant Mishra
The benchmark indices closed higher on Wednesday, driven by positive global cues and easing wholesale inflation. India’s WPI eased to a 21-month low of 5.85% in November. The Bank Nifty continued its upswing as the sectoral index hit a fresh all-time high for the second consecutive session on Wednesday. The index jumped to 44,151.8 points intra-day, exceeding the 44,000 mark for the first time, rallying almost 5% during the day. It settled at 44,049, a rise of 102.55 points over Tuesday.
Also Read: Nifty, Sensex end mild in green, Bank Nifty tops 44100, hits new record; traders eye US Fed for cues
Metals led the gains on the broader index, with Hindalco and JSW Steel raking up gains of over 2%, while Tata Steel rose 1.66%. Consumer stocks remained laggards, with HUL, Britannia and Nestle ending in the red.
Among the Sensex stocks, there was strong interest in IT, with Tech Mahindra leading gains at 1.84%. Wipro, Infosys and TCS closed in the green, gaining between 0.5% and over 1%.
Banking was a mixed bag on both the indices, with IndusInd Bank, SBI, and the HDFC twins gaining and Axis Bank and ICICI Bank closing with losses.
Also Read: Axis Bank, Yes Bank and L&T among 156 BSE stocks to hit 52-week highs, 15 fall to 52-week lows
A total of 1,996 stocks advanced on the BSE and 1,548 stocks declined.
“Domestic equities cheered the lower US inflation data ahead of the Fed outcome. The Bank Nifty crossed 44k for the first time, continuing its new high momentum, aided by strong credit growth and improving net interest margins. Except FMCG, all sectors ended in green. Real estate and housing finance recorded smart gains after inflation data showed signs of easing and fell under RBI mandate range. We expect the momentum to continue in banking and financial stocks, while metals could see some interest on the back of higher LME prices and improving demand in China. Tech stocks are witnessing fresh buying after the recent near-10% fall from recent highs and uptick in US tech stocks,” said Siddhartha Khemka, head (retail research), Motilal Oswal Financial Services.
Both DIIs and FIIs were net buyers, to the tune of ₹926.45 crore and ₹372.16 crore, respectively.