Sensex Today: Equity benchmark indices rallied sharply to close Wednesday’s session, lifted by sustained strength in index heavyweights like Reliance Industries, HDFC Bank and Maruti. The BSE Sensex ended 526 points up at 72,996 coming off a 669 pts intra-day rally. The NSE Nifty 50 jumped 119 points to close at 22,124.
Reliance Industries closed 3.5 per cent higher, making up 58 per cent of Sensex gains after Goldman Sachs raised target price on the stock.
RIL was followed by Maruti, Bajaj Finance, Bajaj Auto, Titan, Kotak Bank, HDFC Bank, IndusInd Bank, M&M, Axis Bank and Larsen & Toubro, which rallied 0.9-2 per cent.
On the other hand, Wipro, UPL, Hero Moto, Nestle India, TCS and Tata Motors were top largecap losers.
The BSE MidCap index rose just 0.1 per cent, while the SmallCap index ended 0.7 per cent higher in the broader market.
Market View | Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The market is likely to continue in the consolidation mode for a couple of days more and then take a new directional trend starting April. The undertone of the market continues to be bullish supported by strong economic fundamentals.
A significant structural trend in the market is the sustained flows into equity mutual funds which are gathering momentum. This will ensure resilience of the market with dips getting bought.
Midcaps have again become the segment of activity, particularly by retail investors. This is because there is no institutional selling pressure in midcaps unlike in largecaps where institutions including FIIs have large holdings.
Financials are likely to lead the rally along with capital goods and automobiles in early April. Credit growth in the economy is impressive at around 20% and this will help boost banks’ profitability. Q4 results of banks will be good.
Global Cues
US stocks slipped on Tuesday, giving up modest gains late in the session to send the Dow and S&P 500 to their third straight decline, as investors awaited economic data in a holiday-shortened week to gauge the Federal Reserve’s policy path.
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