Market recovers from its lows, Metal records sharp gain
Both the benchmark indices closed the session with positive gains experiencing a notable recovery from its lows on Tuesday.
Indian stock indices extended their gains for the fourth straight session on Wednesday, as the 30-share Sensex surged 147 points and closed at 59,107.19 while the Nifty50 rose 25 points to close at 17,512.25.
The indices rose from the previous sessions, tracking firm cues from US markets and a relative decline in international crude oil prices. In the broader index, BSE LargeCap rose 0.08 per cent and HDFC, Siemens, Nestle, Reliance, and ITC were trading in the green while BSE MidCap rose 0.13 per cent with IDBI Bank, Whirlpool, and Tata Elxsi as gainers during the session.
The PSU Banking, Metals, and IT indices were down 0.5-1 per cent. FMCG and infrastructure closed in the green.
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In BSE, information technology, metals, and electricity fell 0.8-1.4 per cent, while FMCG and real estate stocks saw some buying.
“The US markets ended higher yesterday as strong corporate earnings reports helped extend a rally to start the week. Asian markets are trading mostly higher following the broadly positive cues from US markets overnight,” said Mohit Nigam, Fund Manager, and Head – PMS at Hem Securities.
Nigam said there might be some action in agriculture-related stocks as the government said the hike in the minimum support price of rabi crops will further energize the agriculture sector.
On Tuesday, the Cabinet Committee on Economic Affairs (CCEA) approved an increase in the minimum support prices (MSP) for rabi crops for the 2023-24 marketing season. The hike in MSP was in the range of Rs 100-500.
“The government hiked the minimum support price (MSP) of six Rabi crops by up to 9 per cent. There may be some buzz in FMCG stocks as a private report stated that India is examining whether there is a need to raise palm oil import taxes as part of efforts by the world’s biggest vegetable oil importer to help millions of its farmers reeling from lower oilseed prices,” Nigam added.
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