The domestic benchmark indices closed higher for the second straight session on Tuesday, following strong cues from global peers amid optimism about progress in Ukraine-Russia peace talks to end their weeks-long conflict. The market also cheered further fall in crude prices that eased inflation concerns, raising hopes that the Federal Reserve may be less 'hawkish' than expected in its monetary meeting tonight.
The BSE benchmark Sensex closed 1,040 points, or 1.85%, higher at 56,817. The Nifty50 also closed near the 17,000 level, ending 312 points or 1.87%, higher at 16,975.
The market witnessed broad-based buying with BSE midcap and smallcap indices closing 1.8% and 1.5% higher.
The overall market breadth on the BSE was positive, with 2,433 shares advancing out of total 3,802 traded stocks. As many as 1,238 shares advanced and 131 were unchanged.
“Ease in FII selling and crude prices is adding strength to the domestic trend. Positive global cues and strong bounce back by the Chinese market in anticipation of stimulus supported the trend. The world equity market has stabilised factoring in a 25 bps hike in Fed, an in-line policy outlook, will be a relief to the market and we may see a drop in volatility,” says Vinod Nair, head of research at Geojit Financial Services.
Top gainers and losers
Out of the top 30 shares on the BSE Sensex pack, barring Power Grid and Sun Pharma, all heavyweights closed in green zone. UltraTech Cement, a part of Aditya Birla Group, topped the chart with a 4.7% gain amid fall in crude prices. Other cement companies such as Ambuja Cements, ACC, Dalmia Bharat, India Cements, Ramco Cement and Shree Cement also rose up to 3% as Brent crude price slipped below $100 per barrel on Wednesday.
Among others, Axis Bank, IndusInd Bank, Housing Development Finance Corporation (HDFC) and Infosys gained between 2.5% to 3.6%.
On the losing side, pharma major Sun Pharmaceutical Industries was the worst performer with a 0.35% loss, followed by state-run Power Grid Corporation of India, which ended 0.07% lower.
Realty, metal sectors lead rally
On the sectoral front, all indices closed in positive terrain, led by realty and metal space. The BSE realty index was the top performer with a 3.66% gain, led by Prestige Estates Projects, Phoenix Mills, Godrej Industries and Oberoi Realty.
The BSE metal index also resumed its winning streak and rose 2.56% amid easing fuel prices and peace talks between Russia and Ukraine to end the war. The best performers in the metal space were Vedanta, Jindal Steel & Power, Tata Steel, Steel Authority of India (SAIL) and Coal India.
Global stocks follow Wall Street higher
Shares in the Asia-Pacific region closed higher on Wednesday, while European stocks also flashed in green in early deals. Investors remained on edge ahead of the U.S. Federal Reserve policy meeting outcome with the central bank widely expected to raise interest rates for the first time since the onset of the pandemic.
In the Asia-Pacific region, Hong Kong witnessed a record rally with the benchmark index Hang Seng Index ending 9% higher. In mainland China, the Shenzhen Component and the Shanghai Composite surged 4% and 3.5%, respectively, snapping a three-session losing streak.
Japan’s benchmark index Nikkei 225 ended 1.6% higher, and the Straits Times Index in Singapore rose 1.7%.
South Korea’s KOSPI rallied 1.4%, Taiwan's Weighted index climbed 0.1%, Thailand’s SET Composite added 1.4%, and Jakarta Composite in Indonesia soared 1%.
European markets were also in upbeat mood, with Germany’s DAX rising 2.35%. The U.K.’s FTSE 100 index rose 1%, France’s CAC index added 2.5%, and Spain’s IBEX 35 climbed 1.2%.
In the overnight trade, all three major U.S. indices closed higher, snapping a three-day losing streak, ahead of the Federal Reserve's upcoming policy announcement. The Dow Jones Industrial Average surged 1.82%, the S&P 500 added 2.14%, and the Nasdaq Composite rallied 2.92%.