NEW DELHI: After a significant correction, India’s equity market is yet again showing signs of a revival as benchmark indices closed in the green for the fourth straight session. From sliding below the 52,000 level on June 22, the BSE Sensex is now trading above the 55,000 level while the Nifty has recovered about 8% from the June lows of 15,183.
The 30-share index on Wednesday surged 630 points or 1.15% to close the session at 55,397.53, while the broader Nifty gained 180 points or 1.10% at 16,520.80, led by strong buying seen across IT and energy stocks amid positive global cues. Foreign inflows too remained positive on Wednesday.
“The market is hoping that the US Fed may not be aggressive in hiking rates in its next meeting while falling commodity & crude oil prices have moderated the bearish trend in recent sessions,” said Shrikant Chouhan, head of equity research (Retail), Kotak Securities.
Vinod Nair, head of research at Geojit Financial Services, said reduced export duty and windfall taxes improved the mood of oil producers. “Strong quarterly results in the US market fueled the rally, while the European market rose as worries over Europe’s energy supply eased. If sustained buying from FIIs (foreign institutional investors) prevails, it will provide a cushion to the upward rally in the domestic market,” added Nair.
Shares of oil exploration and refinery firms were in high demand, with heavyweight Reliance Industries rallying 2.47% and ONGC surging 4%. This rally came after the government slashed windfall tax on petrol, diesel, jet fuel and crude oil. IT majors- Infosys and Tata Consultancy Services- also gained about 2% and 3%, respectively, on Wednesday.