Bank, IT stocks lift Sensex 460 points as RBI promises cheap money supply

NEW DELHI: Equity benchmarks climbed higher on Wednesday as bulls shrugged off a continuous increase in Covid-19 cases thanks largely to the guarantee of easy money supply from the Reserve Bank of India. Banking and IT stocks were in high demand.

The RBI’s long-term dovish stance to maintain an easy money policy till the economy returns to normalcy invigorated Dalal Street. Firm global cues also aided the sentiment.

The 30-share pack Sensex added 460.37 points or 0.94 per cent to close at 49,661.76. Its broader peer NSE Nifty rose 135.55 points or 0.92 per cent to settle at 14,819.05.

“A big cheer is the G-Sec buying program of Rs 1 lakh crore to ensure liquidity and flatten the long-term yields curve. The RBI’s decision to maintain its high GDP growth forecast also helped the market to calm down its fears which had increased after the second wave infections and stringent lockdowns," said Vinod Nair, Head of Research at Geojit Financial Services.

Market at a glance

• Panacea Biotec extends gains on vaccine deal, surges 3%
• Barbeque Nation lists at 2% discount, but surges 20% afterwards
• IT stock see heavy buying ahead of earnings; rupee fall aids demand
• IPO watch: Macrotech Developers' issue subscribed 25% so far
• JSW Steel climbs another 5% on surge in output, bullish outlook
• Fear gauge India VIX eases 3%

Among the blue chip stocks, JSW Steel was the top gainer, rising 5.33 per cent. Wipro, SBI, IndusInd Bank, SBI Life Insurance, M&M, Nestle India, Eicher Motors and ICICI Bank were other gainers.

Adani Ports was the top loser in the Nifty pack, falling 2.76 per cent. Tata Consumer, UPL, NTPC, Titan Company, HUL and Tata Motors were other stocks that ended in the red.

Broader market indices ended with gains, outperforming their headline peers. Nifty Smallcap added 1.71 per cent and Nifty Midcap advanced 1.32 per cent. Nifty 500 -- the broadest index on NSE -- gained 1 per cent.

Dhani Services, Cholamandalam Investment and Finance, Aditya Birla Capital, Graphite India, Shilpa Medicare and Sequent were top gainers from the mid- and small-cap indices, climbing in the range of 6-10 per cent.

India Cement, Thyrocare Technologies, Welspun India, Adani Total Gas, V-Guard and Dr Lal Pathlabs were major losers from the broader market space, falling in the range of 1-9 per cent.

All sectoral indices closed with gains. Nifty PSU Bank was the top gainer, rising 1.95 per cent. Nifty Private Bank, Nifty Auto, and NIfty IT were other major gainers. Nifty Financial Service added more than 1 per cent.

Overall market breadth was in favour of gainers as 1,837 stocks ended in the green, while 1,111 scrips settled with cuts. As many as 180 securities hit 52-week highs, mostly from the small-cap space. Meanwhile, 40 counters hit 52-week lows, mostly from the micro-cap space. About 320 stocks hit upper circuit limits and 220 lower circuit limits.

European markets were trading higher at the last count. London-based FTSE was up 0.72 per cent while Paris added 0.11 per cent, but Frankfurt fell 0.01 per cent. In Asia, China, Singapore, Hong Kong and Thailand closed with cuts while the rest ended the day with gains.