In volatile trade Thursday, a benchmark index of Indian equities markets closed 123 points or 0.41 percent up, as investors were cautious after the US Fed assessed a strong economic recovery in the US.
Profit-booking took a toll on the 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) during the better part of the trade. The Sensex dipped to an intra-day low of 29,378.30 points, down 180.88 points.
The Sensex was subdued after the US Fed said the US economy, fuelled by rising employment and declining inflation, is recovering.
However, it gained traction in the late hours of trade and closed at 29,681.77 points, up 122.59 points or 0.41 per cent.
“Fed is growing confident in its assessment of the US economic recovery fuelled by rising employment and declining inflation,” said Debopam Chaudhuri, chief economist, ZyFin Research.
“Interestingly, the Indian economic recovery is following an identical trend like that of the US. In both nations, inflation is slowing down along with improving employment perception leading to a recovery in consumer confidence.”
Healthy buying was observed in healthcare, oil and gas and capital goods sector, while metal, technology, entertainment and media (TECK) scrip came under selling pressure.
The S&P healthcare index gained 168.54 points, oil and gas index was up 155.40 points and capital goods index rose 140.55 points.
However, metal index dropped by 22.10 points and TECK index slipped 7.07 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made gains during the day’s trade. It closed 38.05 points or 0.43 percent up at 8,952.35 points.
“There is wide movement to respective stocks, volatility is high but broad index is rallying higher led by FII (foreign institutional investors) inflow,” said Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services.
“Result till date are below expectation, and it will lead to marginal downgrade in earning, but it is unlikely to impact market as outlook for margin and earnings growth is improving in expectation of better demand and reduction in cost.”
The major Sensex gainers were Dr.Reddy’s Lab, up 3.74 per cent at Rs.3,359.20; HDFC Bank, up 3.42 per cent at Rs.1,094.30; BHEL, up 2.96 per cent at Rs.287.15; Reliance Industries, up 2.43 per cent at Rs.927.90; and ITC, up 2.01 per cent at Rs.369.70.
The losers were HDFC, down 2.61 per cent at Rs.1,309.55; Coal India, down 2.32 per cent at Rs.375.15; State Bank of India (SBI), down 2.30 per cent at Rs.326.75; Mahindra and Mahindra, down 1.46 per cent at Rs.1,295.25; and ICICI Bank, down 1.02 per cent at Rs.379.95.
