New Delhi: Benchmark BSE Sensex rallied over 1 percent while Nifty closed above the 16,500 mark on Wednesday after sharp gains in IT, oil & gas, and metal shares amid positive global market trends. The 30-share BSE Sensex rallied 629.91 points or 1.15 percent to settle at 55,397.53 as 22 of its stocks ended with gains. During the day, it jumped 862.64 points or 1.57 percent to a high of 55,630.26. The broader NSE Nifty climbed 180.30 points or 1.10 percent to 16,520.85 with 34 of its constituents ending in the green.
Buying in index majors Reliance Industries, Infosys, and Tata Consultancy Services and FII inflows bolstered the sentiment. Reliance Industries rallied 2.47 percent and ONGC spurted 4 percent as the government slashed windfall tax on petrol, diesel, jet fuel, and crude oil. The government on Wednesday cur the windfall tax on petrol, diesel, jet fuel, and crude oil following a decline in international rates. (Also Read: Sensex climbs to 55,500 level in early trade on strong global markets)
"The move is positive for companies like RIL, ONGC, and Oil India as the decline in windfall tax would mean better and more sustainable margins. These companies were clear beneficiaries of high oil prices, but the recent correction in oil prices coupled with one of the highest windfall taxes globally could have dented profitability," Rohit Khatri, AVP-Fundamental Research, Religare Broking Ltd.
Among the Sensex constituents, Tech Mahindra rose the most by 3.84 percent. HCL Tech rose by 3.08 percent, Tata Consultancy Services by 2.89 percent, and Infosys by 2 percent. Reliance Industries jumped 2.47 percent, SBI by 2.13 percent, and HUL by 1.55 percent. Wipro rose by 1.63 percent ahead of its financial results which were announced after market hours. Its consolidated profit dropped 21 percent to Rs 2,563.6 crore in April-June 2022-23.
Mahindra & Mahindra fell the most by 1.81 percent, while Sun Pharma, Kotak Mahindra Bank, and Asian Paints also declined. "Indian stocks led a steady climb as a result of encouraging signals from both domestic and international markets. Reduced export duty and windfall taxes improved the mood of oil producers. "Strong quarterly results in the US market boosted the rally, while the European market rose as worries over Europe's energy supply eased. (Also Read: Rupee depreciates 4 paise to 79.96 against US dollar in early trade)
If sustained buying from FIIs prevails, it will provide a cushion to the upward rally in the domestic market," said Vinod Nair, Head of Research at Geojit Financial Services. In the broader market, the BSE smallcap gauge jumped 0.42 percent and the midcap index climbed 0.25 percent. Among BSE sectoral indices, IT jumped the most by 2.58 percent, followed by teck (1.99 percent), metal (1.35 percent), and FMCG (1.13 percent). Telecom, utilities, and auto were among the laggards.
"The sharp 8 percent pullback in Nifty from June lows of 15,183 is all set to continue aided by a flood of good news. First, the US markets have rebounded sharply driven by impressive corporate earnings. Second, FPI selling appears to have bottomed out. FPIs have bought 5 days this month," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said. World stock markets advanced on strong quarterly results by companies. In Asia, markets in Tokyo, Seoul, Shanghai, and Hong Kong ended significantly higher following overnight gains in US markets. Markets in Europe were trading mostly higher during mid-session deals. Meanwhile, international oil benchmark Brent crude declined 1.17 percent to USD 106.1 per barrel. Foreign institutional investors remained net buyers on Tuesday picking up shares worth Rs 976.40 crore, as per exchange data.
