Sensex, Nifty settled higher after volatile trade; EPL rise 12%, RVNL tanks 5%

After a volatile trade during the session, domestic equity markets settled higher on Wednesday. However, the gains were capped for the headline peers on the back of muted global sentiments. Traders' eyes will be set on US inflation numbers for April due later today.

For the day, the 30-share pack BSE Sensex jumped 178.87 points, or 0.29 per cent, to settle at 61,940.20, while the Nifty50 index gained 49.15 points, or 0.27 per cent, to close at 18,315.10. Broader markets rose in tandem as BSE midcap and smallcap indices added about one-third per cent each. Fear gauge India VIX spiked over 3 per cent to 13.08-levels.

Markets consolidated for yet another session and ended marginally higher. After the initial uptick, Nifty hovered in a narrow range and finally settled at 18,315.10 levels. It was a muted session on the sectoral front too, however selective buying in realty, energy and auto kept the traders busy, said Ajit Mishra, VP - Technical Research, Religare Broking.

"We are seeing a healthy consolidation and expect the resumption of the uptrend soon. Traders should continue with the 'buy on dips' approach till 18,050 is intact in Nifty. However, one should maintain caution in stock selection now as we’re seeing a mixed trend within sectors," he said.

On a sectoral front, Nifty Media index gained over a per cent, followed by Nifty Auto, Realty, Oil & Gas indices. Nifty FMCG and Private Bank indices rose about half a per cent each. On the downside, Nifty PSU Bank index dropped over a per cent each, while NIfty Metal, IT and Healthcare index were other laggards.

IndusInd Bank topped among the gainers on Nifty50 index as the private lender rose 3 per cent, followed by a 2 per cent rise in HDFC Life Insurance and Power Grid. Tata Motors, Bharat Petroleum, Bajaj Finance, Divis Labs, Eicher Motors, ONGC and NTPC were among the other gainers.

Among the losers, UPL dropped 2 per cent after muted performance in the March 2023 quarter. Dr Reddy's Laboratories declined about more than a per cent ahead of its earnings. Infosys, Hindalco, Sun Pharma, Adani Entertainment, State Bank of India and Tata Steel were other losers.

The domestic market traded near the flatline, oscillating between gains and losses as investors refrained from taking a firm direction due to the uncertainties surrounding the US market, said Vinod Nair, Head of Research at Geojit Financial Services.

"Globally, investors exercised caution in anticipation of US inflation data and a meeting between US political leaders to discuss fiscal concerns. Oil prices edged lower as industry data revealed a surprise surge in US crude stock, indicating a potential weakness in demand," he said.

A total of 3,637 shares were traded on BSE on Wednesday, of which 1,830 settled with gains. 1,660 stocks ended the session lower while 147 shares remained unchanged. A total of 180 shares hit their upper circuit, whereas 139 tested the lower circuit levels for the day.

In the broader markets, EPL surged about 12 per cent on the back of heavy trading volumes, while KEC International rose 10 per cent on the back of a positive brokerage view. Manorama Industries jumped 9 per cent on the back of strong Q4 performance, while Dreamfolks Services and Cyient ended 8 per cent higher each.

On the other hand, Latent View Analytics dropped more than 10 per cent on the back of muted performance in the March 2023 quarter, while Aarti Industries dropped 9 per cent each. JBM Auto declined 7 per cent, while Welspun India dropped 6 per cent amid the Q4 buzz. Rail Vikas Nigam hit a lower circuit of 5 per cent on the back of profit booking.

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