Indian shares bounced back on Wednesday afternoon after a day of choppy trade, rising on the back of a sharp recovery in the Indian rupee. The BSE Sensex traded at 37,679, higher by 269 points or 0.73 percent. The NSE Nifty 50 also traded higher by 79 points to 11,366. Midcaps traded higher by 0.28 percent, but Nifty Bank was flat.
The Indian rupee recovered after reports that the Narendra Modi governemnt will hold a review meeting on the economy on Saturday and take additional measures to deal with situation arising out of rising crude prices and home currency depreciation. Consumer, metal, auto, pharma, IT shares rose, while realty and media continue to trade weak.
(Market update as of 2.55 pm)
Market sustains gains as rupee recovers; FMCG, IT stocks lead
Indian shares held gains amid volatility on Wednesday despite higher crude prices and persisting weakness in the Indian rupee against the US dollar.
Gains were, however, limited as midcaps and bank shares traded weak and offset gains in largecap, particularly FMCG and IT counters. The street also trades cautiously awaiting key August inflation and macro data later today.
The BSE Sensex traded at 37,531.99, rising by 119 points or 0.32 percent at 11.45 am, while the NSE Nifty50 hovered above 11,300 mark, trading at 11,310.05, edging up by 22.55 points, or 0.20 percent.
Midcaps were weak falling by nearly half a percent. BSE LargeCap rose 0.3 percent, particularly led by stocks such as ITC and Hindustan Unilever, Vedanta, Kotak Bank, Grasim, Sun Pharma, Wipro and Infosys.
Sectoral indices were mostly weak with the exception of IT, Teck, Metal and FMCG on the BSE. FMCG rose 1.84 percent. Maximum selling pressure was seen in Realty, Oil & Gas, Bankex, Telecom.
On the NSE, Nifty Bank was down by 0.42 percent, Auto dipped 0.77 percent and both PSU Bank and PVT Bank were trading lower by well over half a percent.
Top gainers were ITC, PowerGrid, Hindustan Unilever, Vedanta, Kotak Mahindra Bank, rising by up to 2.59 percent, while HPCL, BPCL, Tata Motors, M&M, Axis Bank, Hero MotoCorp dipped by up to 2.85 percent.
The Indian rupee recovered after hitting a record low of 72.91 in early trade. It was at 72.68 against the US dollar at 11.57 am.
Asian markets were again under pressure. Japan's Nikkei was lower by 0.27 percent, while Hong Kong's Hang Seng was flat at 0.03 percent gains.
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First Published: IST