Sensex rises 213 points, Nifty settles near 19,450; GMDC jumps 6%; Adani stocks dive up to 8%

Domestic equity markets ended the choppy session with gains. Benchmark indices recovered from the initial muted trade and settled higher on the back of buying in select heavyweight sectors. Traders will be keenly awaiting Fed chairman Jerome Powel's comment due later in the week.

For the day, the 30-share pack BSE Sensex gained 213.27 points, or 0.33 per cent, to settle at 65,433.30, while NSE's Nifty added 47.55 points, or 0.25 per cent, to end the day at 19,444. Broader markets performed in-line with the headline indices as BSE midcap and smallcap indices added a half-a-per cent each. Fear gauge India VIX dropped slightly to 11.73-levels.  

While market undertone remains cautious, investors are cherry picking stocks that were beaten down in recent sessions or have the potential to gain further in the medium term because of sound business fundamentals, said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.

"Technically, the Nifty took support near 19,350 and recouped lost ground thereafter. However, it failed to breach the key resistance level of 19,500. The index is witnessing a positive consolidation. For day traders, 19,400 would act as a trend decider level and above which, the index could rally till 19,535. On the flip side, below 19,400, it could retest the level of 19,350-19,315," he said.  

Adani Enterprises, the flagship company of the Adani group plunged 6 per cent for the day, while Adani Ports tumbled 3 per cent for the day. Demerged from Reliance Industries, Jio Financial Services hit a lower circuit of 5 per cent for the third session in a row.

Among other Adani Group stocks, Adani Transmission crashed 8 per cent, while Adani Power plunged more than 7 per cent. Adani Green Energy dropped more than 4 per cent, while Adani Total Gas fell 3 per cent. Adani Wilmar, NDTV and Ambuja Cements ended 2 per cent down for the day. ACC also settled in red. D-street started the day on a positive note by following its global counterparts and in the opening trade itself, the index retested its strong support of 19,370 followed by a firm follow-up buying. The index rally was mainly driven by financial stocks, especially banking while FMCG and Energy segments witnessed a round of correction, said Aditya Gaggar, Director at Progressive Shares. "Mid and Smallcap indices extended their streak of outperformance. On the daily time-frame, Nifty50 has made a DOJI candlestick pattern at the higher end of the congestion which indicates a reversal to retest its support zone," he added. On a sectoral front, the Nifty PSU Bank index rose about 2 per cent, followed by the Nifty private bank and financial services indices, which gained about a per cent each. The Nifty consumer durable and media indices were the other key gainers for the day. Among the losers, the Nifty FMCG and oil & gas indices dropped a per cent each. In the Nifty50 index, Hindalco and Axis Bank gained more than 2 per cent each, followed by ICICI Bank and Divis Laboratories, which posted likewise gains. Larsen & Toubro, State Bank of India, Tata Steel, Maruti Suzuki India, Cipla, Nestle India, SBI Life Insurance were the other gainers for the day. Among the losers, Sun Pharma, Tech Mahindra and Bharti Airtel dropped more than a per cent each in the blue chip index. Tata Motors, ITC, ONGC, Bharat Petroleum Corporation, Grasim Industries and Tata Consumers Products were the other laggards on the index. Global markets have restrained from making significant moves as they await the outcome of the central bankers' gathering at Jackson Hole scheduled for Friday, said Vinod Nair, Head of Research at Geojit Financial Services. "With the earnings season nearing its end, the heightened possibility of another rate hike in the US, along with the resultant increase in bond yields, are expected to keep the global market’s volatility high. On the domestic front, sentiments remained positive, backed by strong demand in the banking sector, though IT and pharma limited the gains," he added. A total of 3,783 shares were traded on BSE on Wednesday, of which 2,080 settled higher. 1,541 stocks ended the session with cuts while 162 shares remained unchanged. A total of 11 shares hit their upper circuit, whereas only six shares tested the lower circuit levels for the day. In the broader markets, Atul Auto surged 16 per cent, while NGL Fine Chem surged more than 15 per cent. Gujarat Mineral Development Corporation gained 13 per cent, while Gabriel India surged 11 per cent for the day. DB Corp, RattanPower India and MMTC rose 10 per cent each for the day. On the downside, Panacea Biotec plunged 12 per cent for the day, while DCW plunged 7 per cent for the day. Windlas Biotech declined 6 per cent, while Tega Industries and Sona BLW Precision lost 4 per cent each for the day.

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