Extending gains for the second session, the BSE benchmark Sensex Wednesday rose over 100 points tracking heavy buying by domestic institutional investors after the government said that the country’s trade deficit had narrowed to a 10-month low.
The 30-share index jumped 122.14 points, or 0.34 per cent, to 36,440.47 in early trade.
Similarly, the NSE Nifty reclaimed the 10,900 mark by rising 33.75 points, or 0.31 per cent, to 10,920.55.
On Tuesday, the Sensex had settled 464.77 points, or 1.30 per cent, higher at 36,318.33, while the broader Nifty rallied 149.20 points, or 1.39 per cent, to finish at 10,886.80.
In morning session on Wednesday, the biggest gainers in the Sensex pack were IndusInd Bank, NTPC, SBI, Reliance Industries, ICICI Bank, Vedanta, Axis Bank, Tata Steel, PowerGrid, ONGC and Infosys, rising up to 1.35 per cent.
While, ITC, TCS, Hero MotoCorp, HCL Tech, HUL and Sun Pharma were among the top losers, shedding up to 0.66 per cent.
According to traders, despite weakness in global markets, investor mood on Dalal Street was positive on news that declining imports had narrowed the trade deficit to ten-month low of USD 13.08 billion in December 2018 as against USD 14.2 billion in the same month previous year.
However, gains were capped as exports grew at the slowest pace in three months at 0.34 per cent in December, they added.
“The recent stock market action is indicative of bull market action, shrugging off bad news and moving higher on good news,” said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
With strong top line performance by marquee names in a challenging environment last quarter, and improving macros, the earnings recovery is likely to pick up in the current quarter, barring global surprises, he said, adding “with expectations for a rate cut rising, improving recoveries on bad loans, and rising domestic SIP flows, we expect investors to look past disappointing news flow.”
On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 159.60 crore Tuesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 417.44 crore, provisional data available with BSE showed.
The rupee, meanwhile, appreciated 7 paise against the US dollar to 70.98.
The benchmark Brent crude futures fell 0.26 per cent to USD 60.48 per barrel.
Global investor sentiment, on the other hand, was cautious after British Prime Minister Theresa May’s divorce deal to leave the EU was overwhelmingly rejected by MPs, triggering a no-confidence motion against her government and leaving the country with no plans for Brexit on March 29.
This is the biggest defeat for a sitting British government in history.
Globally, elsewhere in Asia, Japan’s Nikkei shed 0.55 per cent, Hong Kong’s Hang Seng was down 0.21 per cent and Shanghai Composite Index was trading 0.05 per cent lower; while Kospi rose 0.24 per cent in early trade.
On Wall Street, however, Dow Jones Industrial Average ended 0.65 per cent higher at 24,065.59 points on Tuesday.
Rupee rises 13 paise to 70.92 vs USD in early trade
The rupee opened on a weaker note but soon pared the losses and appreciated by 13 paise to 70.92 against the US dollar in opening trade Wednesday, driven by gains in domestic equities and weakening of the greenback in overseas markets.
The rupee opened on a weak note at 71.10 at the interbank forex market then lost further ground and touched a low of 71.12.
The domestic unit however pared the losses and touched a high of 70.92, registering gains of 13 paise over it’s previous close.
Forex dealers said, selling of the American currency by exporters supported the rupee.
The rupee Tuesday plunged by 13 paise to close at 71.05 against the US dollar.
Forex traders said, fresh foreign fund-flows and easing crude oil prices supported the rupee up move.
Foreign funds purchased shares worth Rs 159.60 crore from the capital markets on a net basis, while domestic institutional investors purchased shares worth Rs 417.44 crore Tuesday, provisional data showed.
The benchmark BSE Sensex was trading with gains of84.36 points, or 0.26 per cent to quote at 36,413.32 while the NSE Nifty was trading at 10,914.40, up 27.60 points, or 0.25 per cent.
Meanwhile, brent crude, the global benchmark, was trading lower at 60.43 per barrel lower by 0.35 per cent.