Sectorally, the Nifty Bank rose 1.1 percent, followed by Nifty Realty index which rose 1.10 percent, and the Metal index closed 0.99 percent higher.
The S&P BSE Sensex rallied over 250 points on Wednesday while the Nifty50 reclaimed 10,700 levels and closed above 10,750 after two straight days of decline, despite muted global cues in the morning.
The Nifty50 index closed above most of its short-term moving averages such as 20-EMA, 13-EMA, and closed just around its crucial 5-EMA placed at 10,773, helped by value buying at lower levels.
“Stock markets in India shrugged recent weakness to trade on a positive note. In line with global cues, benchmark indices in Indian opened the day in the green and traded with strength, through the day,” Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“Recovery in global stocks boosted sentiment on the domestic bourses while bargain hunting at lower levels provided some stability to markets. Both the benchmark Sensex and the Nifty finally closed the day with gains of 0.50 percent,” he said.
Sectorally, the Nifty Bank rose 1.1 percent, followed by Nifty Realty index which rose 1.10 percent, and the Metal index closed 0.99 percent higher.
On the losing side, the Nifty FMCG index slipped 0.46 percent, followed by the IT index which closed 0.28 percent lower.
Top Nifty gainers include names like RIL (up 2.3 percent), Vedanta (up 1.9 percent), IndusInd Bank (up 1.8 percent), Kotak Mahindra Bank (up 1.6 percent), and HDFC Bank (up 1.6 percent).
Top Nifty losers include names like UPL (down 3.2 percent), IOC (down 1.9 percent), HPCL (down 1.6 percent), ONGC (down 1.2 percent), and Dr Reddy’s Laboratories (down 1.06 percent).
Stocks in news:
Bank of Maharashtra which fell 7 percent intraday after a member of its senior management was arrested managed to recoup most of its losses. The lender’s Chairman and Managing Director (CMD) Ravindra Marathe along with five others have been arrested for extending fraudulent loans to Pune-based DSK Group, police said. The stock closed 0.3 percent lower.
Shares of InterGlobe Aviation fell 7.4 percent as investors turned cautious of summons by investigating agencies to its top management. Source told CNBC-TV18 that the Enforcement Directorate has summoned the top management of the carrier in a case related to violations related to foreign exchange management act (FEMA).
Shares of Unichem Laboratories added 4.9 percent as the company entered into settlement agreement with Eli Lilly. The company has entered into a settlement agreement with Eli Lilly & Company and ICOS Corporation to resolve their patent litigation in the United States District Court for the District of New Jersey regarding company’s abbreviated new drug application for generic tadalafil (Cialis).
Shares of Wheels India gained 7.7 percent as investors cheered the news of bonus issue in the offing. The company, in a filing to the exchanges, said that a Board meeting is scheduled for Friday, June 22, 2018.
In other news/Global Update:
Globally markets traded higher with indices paring some of the sharp losses seen in the previous session caused by rising fears of a trade war between top two economies US and China. Japan’s Nikkei, Australia’s ASX 200 and South Korea’s Kospi ended up 1 percent each followed by China’s Shanghai Composite (up 0.31 percent) and Hong Kong’s Hang Seng (up 0.77 percent).
Among European markets, Britain’s FTSE was trading higher by 1.2 percent while Germany’s DAX and France’s CAC gained 0.4 percent each at the time of writing this article.
Oil prices also inched up due to a fall in US crude inventories and the loss of storage capacity in Libya. Investors also looked cautious ahead of OPEC meeting to decide production policy later in the week. Brent crude futures were at $75.57 a barrel, up 0.65 percent.
