Equity benchmark indices were off to a strong start on Wednesday, marking five straight sessions of gains, underpinned by fresh buying in IT stocks and renewed foreign investment.
Early in the day, the BSE Sensex rose by as much as 330 points to 82,257.74, while the NSE Nifty advanced 84 points to reach a 25,192.50 high.
Among the leading performers from the Sensex pack were Titan, Infosys, Tata Consultancy Services, Tech Mahindra, HCL Tech, and Maruti Suzuki. On the other hand, Power Grid, Sun Pharma, UltraTech Cement, and Hindustan Unilever saw declines.
Foreign Institutional Investors switched to buying mode on Tuesday, acquiring equities worth Rs 1,440.66 crore, according to exchange data. V.K. Vijayakumar of Geojit Investments Limited told agencies that institutional investment continues to support the market’s mild rally, adding that FIIs turning buyers is an encouraging development, but it's still premature to call it a lasting trend.
Activity across Asian markets was mixed. Japan’s Nikkei 225 traded higher, whereas Hong Kong’s Hang Seng index was in negative territory. Markets in China and South Korea remained closed for holidays. Meanwhile, US markets ended Tuesday on a weaker note.
The global oil benchmark Brent crude saw a 0.78 per cent rise, hitting $65.96 a barrel. On Tuesday, the Sensex closed 136.63 points higher, settling at 81,926.75, while the Nifty added 30.65 points to close at 25,108.30.
Rupee gains
The rupee posted a marginal gain in Wednesday’s morning session, appreciating by two paise to 88.75 against the US dollar. This movement came amid a steady positive trend in the domestic equity markets and expectations of capital inflows tied to ongoing IPO activity.
Forex dealers noted that trading remained mostly range-bound, as the rupee continues to face pressure resulting from persistent capital outflows and the impact of recent geopolitical events. The rupee initially opened at 88.76 at the interbank foreign exchange market and then edged up to 88.75, slightly stronger than the previous day's close of 88.77.
Despite the minor uptick, currency analysts indicate that the rupee could fluctuate within a narrow band of 88.50 to 89.00 during the session, given that significant IPO-related inflows are expected only at the close of subscriptions.
Meanwhile, the dollar index was up 0.28 per cent at 98.85.
On the broader trade front, Commerce and Industry Minister Piyush Goyal mentioned that India and the US are actively continuing discussions on finalising a bilateral trade agreement.
While the next round of negotiations could potentially be held in person, any concrete scheduling depends on the resolution of the ongoing US government shutdown, which may cause delays in further dialogue.
