Sharp rally in banks & FMCG stocks

Sharp rally in banks & FMCG stocks

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The Indian market had a strong trading session on Wednesday as benchmark indices closed with high gains, driven by a rally in banks and FMCG stocks. In the broader market, midcaps too had a field day and outperformed the frontline Nifty index.

The gains followed strong movement by the market for the second consecutive session, after seeing a correction throughout last week.

ITC, HDFC and HDFC Bank contributed most to the gains on indices. Only 13 Nifty stocks closed in the red, where Infosys and Reliance were the top losers. Among sectors, except energy all indices closed in the green.

The Sensex ended up 321.86 points at 31770.89, while the Nifty ended higher by 103.15 points at 9897.30. The market breadth was positive, but a tad narrow as 1,638 shares advanced against a decline of 946 shares, while 118 shares were unchanged.

Cipla, Tata Motors and Tech Mahindra gained the most on both indices, while NTPC, Asian Paints and Power Grid were the top losers.

Leveraged companies ended up with good gains after the market regulator Securities and Exchange Board of India (SEBI) came up with a notification that no open offer will be needed for lenders.

“Since the beginning of this week, investors in India have been shrugging off recent worries in favour of value buying. Benchmark indices in India opened the day on a flat note but subsequently eschewed weakness for strength and traded with robust gains. Both the benchmark Sensex and the Nifty finally closed the day with gains of 1%,” Karthikraj Lakshmanan, Senior Fund Manager – Equities, BNP Paribas Mutual Fund said in a statement.

Source moneycontrol.com
Via moneycontrol.com

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