Mumbai. The local stock markets continued to rise on Wednesday and the BSE Sensex was in profit of more than 100 points. The market got support from buying in stocks of daily use goods companies, durable consumer goods and health sector amid strong buying by domestic institutional investors. According to traders, however, the recent capital withdrawal by foreign institutional investors amid cautious stance in global markets before the release of details of the Federal Reserve meeting in the US somewhat curbed the rise in the domestic market.
The market trading remained in a limited range. The 30-share BSE Sensex rose for the second consecutive day and closed at 80,905.30 points, up 102.44 points or 0.13 percent. At one point during trading, it had risen by 149.97 points.
NSE Nifty rose for the fifth day and closed at 24,770.20 with a gain of 71.35 points or 0.29 percent.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market remained in a limited range with gains. The market got support from capital inflows from domestic institutional investors. Sectors considered defensive to deal with the risk in the market performed well. The reason for this is that investors are inclined towards companies manufacturing daily use goods (FMCG), commodities, consumer goods and pharmaceutical sector.”
He said, “Ahead of the release of the details of the Federal Open Market Committee (FOMC) meeting, some cautious stance was seen in the global markets. With the reduction in inflation rate and softening of growth rate in the US, there is high hope for a cut in the policy rate.” Among the Sensex companies, Titan, Asian Paints, ITC, Hindustan Unilever, Nestle India, Bajaj Finserv and Bharti Airtel were in profit.
On the contrary, UltraTech Cement, Tech Mahindra, Tata Steel, Power Grid, HDFC Bank, HCL Technology, State Bank of India and ICICI Bank were among the stocks that remained in loss. The BSE Smallcap index, representing the shares of small companies, rose 0.87 percent while the Midcap index, associated with medium companies, was in profit of 0.43 percent.
Avdhoot Bagkar (Technical and Derivative Analyst) of Stocks Box said, “Indian market showed mixed signals. Major indices remained in a limited range.” He said, “Investors are now eyeing the details of the US Federal Reserve meeting regarding the reduction in policy rate. Apart from this, people will also be eyeing the address of Federal Reserve chief Jerome Powell at the Jackson Hall Economic Symposium.
In other Asian markets, Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng were in losses while South Korea’s Kospi was in profit. There was a bullish trend during trading in major European markets. American markets were in losses on Tuesday.
According to stock market data, foreign institutional investors were net sellers on Tuesday. They sold shares worth Rs 1,457.96 crore. However, domestic institutional investors bought shares worth Rs 2,252.10 crore. Global oil benchmark Brent crude rose 0.28 percent to $77.42 per barrel. The BSE Sensex rose 378.18 points and the NSE Nifty rose 126.20 points on Tuesday.