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Bank, IT stocks drive Sensex 173 points higher; Nifty tops 11,900

The market breadth was negative, indicating a narrow rally in index heavyweights.

, ETMarkets.com|
Dec 11, 2019, 04.21 PM IST
Twenty-one of 30 Sensex stocks closed higher, with financials contributing the most to the behnchmark index’s gains.
MUMBAI: Benchmark equity indices Sensex and Nifty staged a late recovery in Wednesday's session amid buying in banking and IT stocks. Investors were keenly eyeing the US Fed policy decision and developments on the trade front for further cues.

BSE’s 30-share Sensex rose 0.43 per cent or 173 points to close at 40,413, while NSE’s 50-share Nifty climbed 0.45 per cent or 53 points to end at 11,910.

Even as markets recovered, the market breadth was negative, indicating a narrow rally in index heavyweights. Losers outnumbered gainers in the ratio of 1.4:1 on the BSE.

Markets at a glance:
Twenty-one of 30 Sensex stocks closed higher, with financials contributing the most to the benchmark index’s gains. Mortgage lender HDFC contributed 45.58 points to Sensex's overall rise with a gain of 1.19 per cent. Private lender Kotak Mahindra Bank (29.71 points) followed next, as it rose 1.56 per cent.

YES Bank with a decline of 13.65 per cent was the biggest Sensex loser. Doubts over the private lender's fundraising plans lead to a decline in the stock price.

In the broader market, BSE midcap index rose 0.52 per cent, while the BSE small cap index closed flat.

Among sectoral indices on BSE, Oil & Gas index and power indices led the gainers, and advanced 1.13 per cent and 1.12 per cent respectively.

Telecom major Vodafone Idea rose nearly 2 per cent amid reports that the company was planning to raise $2.5 billion by sale of assets.

Analysts’ take:
“After a subdued trade during most part of the day, market witnessed a sharp turnaround due to short covering in index heavyweights. Upcoming macro indicators like CPI inflation & IIP data are unlikely to paint a rosy picture which may reduce upside potential in the near term. On global front, FOMC meeting, UK election and US tariff deadline remain key events,” Vinod Nair, head of research at Geojit Financial Services.

“Index managed to close a day above 11,900 zone after super volatile session and formed bullish candle on daily chart. Index well reversed from its strong support zone of 11,850-11,800 hinting same levels will act as immediate support for nifty in coming session and resistance for index is coming near 11,950-12,000 zone. Narrow range for index is still coming in between 11,800-12,100 zone, traders are advisable to use mentioned level to trade,” Rohit Singre, Senior Technical Analyst at LKP Securities

Global markets:
Asian stocks extended gains on Wednesday, although advances were patchy ahead of key central bank meetings while the pound wobbled as opinion polls pointed to a tight UK election later this week, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent.

European shares were a bit lower as investors intently waited for a pivotal British election on Thursday to decide the fate of Brexit, a Reuters report said.

The pan-European STOXX 600 index ticked down 0.2 per cent in volatile trading.

Also Read

Questions for 2020: Sensex climbing Mount 50,000?

Four factors behind Sensex's 428 point rally

YES Bank shares fall 2% on Sensex rejig

Sensex, Nifty trade lower; Infosys slips 3%

BNP sees Sensex at 44500 by year-end, turns bearish on the consumer sector

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