Sensex closes up 245 points over budget hopes, Nifty reclaims 8,200-mark

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Mumbai: The Sensex rebounded strongly to end near a two-month high of 26,878 by zooming over 245 points and the NSE Nifty rescaled the 8,200-mark after the US Fed minutes hinted at the uncertainty over pace of rate hike.

A higher US interest rate means flight of capital from emerging markets in quest of better returns. Sentiment took on shine after value-buying in blue-chips amid a mixed trend in global markets boosted by overnight gains in the US.

The US shares rose after minutes of Federal Reserve’s December meeting signalled a less aggressive stance on policy tightening, traders said. Retail investors, too, went ahead with buying as cash crunch following demonetisation started to lose its bite, they added.

The Sensex stayed in the positive space throughout and closed at near two month high at 26,878.24, up 245.11 points, or 0.92%. This is its highest closing since 10 November at 27,517.68. Intra-day, it shuttled between 26,917.21 and 26,738.42. It had lost around 10 points in the previous session.

The 50-share NSE Nifty wrested control of the crucial 8,200 level and ended at 8,273.80, a gain of 83.30 points, or 1.02%, after moving between 8,282.65 and 8,223.70. Thursday’s close is the highest since 8,296.30 on 11 November. The rupee showed some muscle rising 28 paise intra-day against the dollar at 67.77, which had a positive influence. Buying activity was so strong that all the sectoral indices except IT and technology ended in the green, rising by up to 3%.

The top gainers on the 30-share Sensex were Adani Ports 4.88%, Tata Steel 3.47%, Tata Motors 3.18%, ONGC 2.73%, Power Grid 2.50%, ICICI Bank 2.41% and Maruti Suzuki 2.28%.

However, TCS, HDFC Bank and Infosys ended in the red with a fall of up to 1.85%. Broader markets were in a bullish form, with BSE mid-cap rising 1.32% and small-cap 0.98%.

Hong Kong’s Hang Seng firmed up 1.46% and Shanghai composite index gained 0.21% while Japan’s Nikkei slipped 0.37%. Meanwhile, foreign funds sold shares worth Rs800.71 crore on Wednesday, as per provisional data.