Sensex and Nifty closed on a bullish note on Wednesday amid positive global cues. Extending gains for the second straight session, the 30-scrip BSE benchmark Sensex ended 258 points higher at 39,302 and NSE Nifty 50 closed 82 points higher at 11,604. Yesterday, the 30-scrip BSE benchmark Sensex ended 287 points higher at 39,044 and NSE Nifty 50 closed 81 points to 11,521.
Dr Reddy, M&M, Hindalco, Bajaj Auto, Maruti, L&T, Tata Steel, UltraTech Cement and Nestle India were among the top gainers on the Sensex pack today. On the other hand, HCL Tech, Axis Bank, ICICI Bank, Bajaj Finance and SBI were among the laggards. Barring media and PSU Banks, all the other indices closed in green territory, with over 1% rise in auto indices and over 2% gain in pharma and realty stocks.
Ajit Mishra, VP - Research, Religare Broking said, "Participants took note of the RBI governor's speech at FICCI meeting that the economy is showing signs of stability but recovery will be gradual. As defensive stocks are showing tremendous resilience, we suggest preferring stocks from pharma, FMCG and IT pack for long trades."
Asian markets that traded mixed earlier, retreated to bullish momentum by the afternoon session today, as market participants awaited the outcome from the Federal Reserve concluding its two-day policy meeting on Wednesday. The Federal Open Market Committee will give its quarterly update of the policy announcement on where it sees GDP, unemployment and inflation going.
Markets in Wall Street closed higher on the back of broad market gains and positive economic data ahead of the FOMC meeting outcome. European markets also traded mostly higher, as investors focused on upcoming FOMC, BoJ and BoE meeting outcomes.
On the macro front, an increase in the US factory production and data that showed China's industrial output and retail sales picked up also kept markets optimistic today.
Vinod Nair, Head of Research at Geojit Financial Services said, "Global cues were also positive as participants awaited the policy statement from the US FOMC meeting. Any indication of increased bond-buying will be a positive trigger for the markets. Markets are expected to be in sync with global cues tomorrow."
Investors will be monitoring just how quickly economies can return to recovery mode from the coronavirus-induced recession. Worldwide, there were 297.27 lakh confirmed cases and 9.39 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 82,091 and total coronavirus cases climbed to 50.20 lakh as of Wednesday.
In terms of technical indicators, NSE Nifty 50 has crossed the range of 11500-11600 in the last 2 sessions and can look forward to the levels 11800 and then 12000. The index closed above its 20-day EMA for a straight fifth trading session in a row.
Rohit Singre, Senior Technical Analyst at LKP Securities said," Nifty formed a bullish candle for the second consecutive day. Nifty has witnessed fresh breakouts on intra time frames which suggest current pullback can extend up to 11650-11700 zone which is a strong hurdle on the higher side, support is shifted to 11550-11500 zone."
On the currency front, Indian rupee gained by 12 paise and settled at 73.52 per dollar over its previous closing price of 73.64, supported by positive domestic equities and weak American currency. As per Geojit Financial Services, For USDINR, 73.83 and 74.05 may act as crucial levels in the upside while 73.48 and 73.25 will act as support levels.