Markets gave up early gains but managed to end higher for the third straight session on Wednesday, driven by robust buying in technology and healthcare stocks amid positive macro data.
The BSE Sensex closed 46.64 points higher at 35,739.16, while the broader NSE Nifty rose 13.85 points to 10,856.70.
Sentiment was largely positive after April IIP grew at 4.9%, spurred by higher growth in manufacturing and mining sectors.
However, concern prevailed over retail inflation inching up to 4.87% in May on increase in food prices.
The BSE IT index was the session’s top gainer, spearheaded by TCS which spurted 2.43% after the company said it will consider a share buyback proposal at its board meeting on Friday.
Asian markets ended mixed and European stocks rose in early deals as investors awaited the US Federal Reserve’s policy decision, shifting focus away from the US-North Korea summit.
The 30-share Sensex opened strong and hit a high of 35,877.41 on sustained buying by domestic institutional investors.
However, it succumbed to late selling and finally settled at 35,739.16, still up 46.64 points, or 0.13%.
The index has now gained 295.49 points in three days.
Similarly, the broader 50-issue NSE Nifty ended higher by 13.85 points, or 0.13%, at 10,856.70 after moving in the range of 10,893.25 and 10,842.65.
Meanwhile, domestic institutional investors (DIIs) bought shares worth a net ₹1,327.45 crore, while foreign portfolio investors (FPIs) sold equities worth ₹1,168.88 crore on Tuesday, provisional data showed.
“Market extended its rally as domestic industrial activity witnessed a turnaround at 4.9% in April. However, caution ahead of Fed policy influenced late selling in the market which finally ended up with a marginal gain.
“The rise in CPI inflation to 4.87% in May is largely factored in by the market and is in line with RBI’s estimate for H1FY19 while 10-year yield was seen inching lower,” said Vinod Nair, Head of Research, Geojit Financial Services.
Dr. Reddy’s emerged as the top gainer among the Sensex constituents, climbing 2.82%, followed by TCS.
Sun Pharma gained 0.95% after the company said it has received establishment inspection report (EIR) from the US health regulator for its Halol facility in Gujarat.
Other prominent winners were SBI 1.70%, Power Grid 1.43%, Infosys 1.41%, ICICI Bank 1.18%, Wipro 0.98%, RIL 0.67%, Bajaj Auto 0.66%, Axis Bank 0.55%, Hero MotoCorp 0.28%, Yes Bank 0.21% and Coal India 0.14%.
Loser included Tata Steel 2.12%, Adani Ports 1.48%, HUL 1.31%, Bharti Airtel 1.30%, ONGC 0.79%, IndusInd Bank 0.71%, ITC 0.70%, HDFC Ltd 0.65%, L&T 0.48% and HDFC Bank 0.46%.
In sectoral terms, the BSE IT index rose 1.29%, teck 0.94%, healthcare 0.58%, consumer durables 0.57%, bankex 0.27%, PSU 0.25% and realty 0.22%.
However, infrastructure index fell 0.71%, while capital goods shed 0.66%.
Broader markets dipped as investors booked profits in recent gainers, with the mid-cap and small-cap indices falling 0.46% and 0.21%.
US stocks closed little changed on Tuesday ahead of the Federal Reserve’s policy decision.
In the Asian region, Japan’s Nikkei gained 0.38%, while Hong Kong’s Hang Seng fell 1.22%. Shanghai Composite Index too shed 0.97%.
European shares, however, were in better form in their early deals. Frankfurt’s DAX was up 0.11%, while Paris CAC 40 rose 0.26%. London’s FTSE edged higher by 0.11%.