An oft-repeated comment on Dalal
Street is that the Indian capital market is like a cricket match where one
cannot predict the outcome till the last minute. The statement may have proved
true on Wednesday, when the indices which were almost rangebound till noon,
suddenly sprang to life to close with hefty gains.
Short-covering in the derivatives segment alongwith renewed interest in the banking sector aided the rise. An overall strong trend in the Asian markets and the overnight US bourses also acted as a booster. For the record, the 30-share Sensex ended the day at 12945.88, up 239.94 points or 1.89%.
Earlier in the day, the index opened with a marginal positive gap at 12735.91 and dipped into the red for only a brief period. Thereafter, it gained ground, albeit in a slow and steady manner. The day’s high for the Sensex was pegged at 12964.94. Interestingly, all the sectoral indices also gained ground on Wednesday, which was not the case in the past couple of days. Meanwhile, the broader S&P CNX Nifty closed at 3764.55, up 66.95 points or 1.81%. Elsewhere in Asia, while the Hang Seng was up by 160 points, Nikkei gained 154 points. The overnight Dow was also up by 62 points.
“The market seems to be in a recovery stage,” said Janish Shah, head (research), Networth Stock Broking. “While the gains were primarily due to the surge in frontline stocks, some amount of short-covering was also witnessed. Further, banking stocks generated a lot of interest,” he added. Understandably, the BSE Bankex was the best performer of the day among all the sectoral indices, gaining 254.06 points or 4.04%. All the 16 stocks that form part of the BSE Bankex gained ground on Wednesday.
Sensex constituents like ICICI Bank, HDFC Bank and SBI all gained in the range of 1-6% each. ICICI was the top gainer at Rs 870.35, up 5.64%. Others like UTI Bank, Union Bank, BoI, Centurion and Allahabad Bank all witnessed a lot of buying interest.
Meanwhile, according to BSE data, FIIs were net buyers at Rs 188 crore (provisional) on Wednesday. In the derivatives segment, they were net buyers at Rs 565.56 crore on March 20.
Short-covering in the derivatives segment alongwith renewed interest in the banking sector aided the rise. An overall strong trend in the Asian markets and the overnight US bourses also acted as a booster. For the record, the 30-share Sensex ended the day at 12945.88, up 239.94 points or 1.89%.
Earlier in the day, the index opened with a marginal positive gap at 12735.91 and dipped into the red for only a brief period. Thereafter, it gained ground, albeit in a slow and steady manner. The day’s high for the Sensex was pegged at 12964.94. Interestingly, all the sectoral indices also gained ground on Wednesday, which was not the case in the past couple of days. Meanwhile, the broader S&P CNX Nifty closed at 3764.55, up 66.95 points or 1.81%. Elsewhere in Asia, while the Hang Seng was up by 160 points, Nikkei gained 154 points. The overnight Dow was also up by 62 points.
“The market seems to be in a recovery stage,” said Janish Shah, head (research), Networth Stock Broking. “While the gains were primarily due to the surge in frontline stocks, some amount of short-covering was also witnessed. Further, banking stocks generated a lot of interest,” he added. Understandably, the BSE Bankex was the best performer of the day among all the sectoral indices, gaining 254.06 points or 4.04%. All the 16 stocks that form part of the BSE Bankex gained ground on Wednesday.
Sensex constituents like ICICI Bank, HDFC Bank and SBI all gained in the range of 1-6% each. ICICI was the top gainer at Rs 870.35, up 5.64%. Others like UTI Bank, Union Bank, BoI, Centurion and Allahabad Bank all witnessed a lot of buying interest.
Meanwhile, according to BSE data, FIIs were net buyers at Rs 188 crore (provisional) on Wednesday. In the derivatives segment, they were net buyers at Rs 565.56 crore on March 20.
