Sensex and Nifty 50 gain as markets reopen after holiday
Indian equities closed higher on Wednesday as foreign institutional buying and softer crude oil prices supported market sentiment.
Indian equity benchmarks closed higher on Wednesday as markets reopened following the Diwali-Balipratipada holiday, according to a report by Mint. The Sensex climbed 772.75 points to reach 81,879.40, while the Nifty 50 rose 210.40 points to settle at 25,255.05.
The market gains were supported by foreign institutional inflows totalling approximately ₹ 53,170 crore over six trading sessions in November. Additionally, lower crude oil prices helped ease concerns regarding inflation and input costs, while the rupee strengthened to 93.69 against the US dollar.
Nifty 50 companies reported nearly 24 per cent profit growth in the September quarter, which helped lift sentiment. Gains were led by PSU banks, auto, private bank, and FMCG stocks, with M&M, IndiGo, and Trent among the top performers.
However, the benchmarks surrendered some early gains due to selling in IT, pharma, and realty stocks. This pressure followed higher-than-expected US inflation data and remarks from the Federal Reserve that pushed global bond yields higher.
The Nifty Bank index also rose, gaining 1,051.15 points or 1.76 per cent to close at 60,792.40. Heavyweight stocks such as Axis Bank, SBI, and Kotak Mahindra Bank led the gains, while ICICI Bank was a laggard.
While momentum indicators remain bullish, the Nifty 50 and Nifty Bank are in overbought territory. Analysts suggest the indices may consolidate before making their next directional move.