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10 Jan 2024 1:03 PM GMT
Summary
The weakness in global indices continued to weigh down the domestic indices with every up move.
Equity benchmark indices Sensex and Nifty bounced back from intra-day lows to settle higher on Wednesday, supported by a fag-end buying in market heavyweights Reliance Industries, ICICI Bank and HDFC Bank.
After a muted opening, the BSE benchmark swung between gains and losses before settling 271.50 points or 0.38 per cent higher at 71,657.71. The index hit a low of 71,110.98 and a high of 71,733.84 during the session.
The Nifty advanced 73.85 points or 0.34 per cent to 21,618.70.
"The weakness in global indices continued to weigh down the domestic indices with every up move. The market is looking for fresh triggers for a direction, and the release of US and Indian inflation data may provide a near-term direction in the market.
"The investor's focus will be shifted to the earnings season, on a sequential basis, the earnings growth is likely to be lower, while the expectations for auto, capital goods, and cement will remain strong," said Vinod Nair, Head of Research, Geojit Financial Services.
Reliance Industries was the biggest gainer in the Sensex pack, rising 2.69 per cent, followed by HCL Tech, ICICI Bank, Tata Motors, Wipro, IndusInd Bank, JSW Steel, Wipro, Tata Consultancy Services and Titan.
In contrast, NTPC, Power Grid, UltraTech Cement, Axis Bank, Infosys and Nestle were the major laggards.
In Asian markets, Tokyo settled in the green while Seoul, Shanghai and Hong Kong ended lower.
European markets were trading mostly in the green. The US markets ended mostly lower on Tuesday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 990.90 crore on Tuesday, according to exchange data.
Global oil benchmark Brent crude dipped 0.19 per cent to USD 77.44 a barrel.
The BSE benchmark ended marginally higher by 30.99 points or 0.04 per cent at 71,386.21 on Tuesday. The Nifty ended 31.85 points or 0.15 per cent up at 21,544.85.
Gold, Silver down
Gold prices fell Rs 50 to Rs 63,150 per 10 grams in the national capital on Wednesday, according to HDFC Securities.
In the previous close, the precious metal had closed at Rs 63,200 per 10 grams.
Silver also declined Rs 450 to Rs 76,300 per kilogram.
"Gold traded slightly lower on Wednesday, with spot gold prices (24 carats) in the Delhi markets trading at Rs 63,150/10 gram, down Rs 50 against the previous close," Saumil Gandhi, senior analyst of commodities at HDFC Securities, said.
Meanwhile, in the futures trade on the MCX, February contract of gold rose Rs 86 to Rs 62,265 per 10 grams. Also, March contract of silver jumped Rs 243 to Rs 72,290 per kg on the bourse.
In the international markets, gold and silver were down at $2,030 per ounce and $23.04 per ounce, respectively.
Spot gold at Comex was trading at $2,030 per ounce, down $1 from the previous close in the global markets.
Gold prices traded in a narrow range as investors are keeping a close eye on the US Inflation report which is going to release on Thursday that could influence the Federal Reserve's decision on monetary policy interest rate path, Gandhi added.
Oil slips
Crude oil futures on Wednesday declined 0.75 per cent to Rs 5,989 per barrel as participants trimmed their positions on low demand.
On the Multi Commodity Exchange, crude oil for January delivery fell Rs 45 or 0.75 per cent to Rs 5,989 per barrel with a business volume of 12,257 lots.
Globally, West Texas Intermediate crude oil traded 0.29 per cent lower at USD 72.03 per barrel, while Global oil benchmark Brent crude dipped 0.19 per cent to USD 77.44 a barrel.
Rupee gains
Rising for the sixth straight session, the rupee jumped 11 paise at 83.02 (provisional) against the US dollar on Wednesday, tracking a firm trend in equity markets and easing crude prices.
A weak greenback overseas and expectations of favourable global and domestic macroeconomic data also boosted the domestic currency, forex traders said.
At the interbank foreign exchange market, the local unit opened at 83.13 and traded between the peak of 82.97 and the lowest level of 83.18 against the greenback during the session.
It finally settled at 83.02 (provisional) against the dollar, registering a gain of 11 paise from its previous close.
The domestic currency settled 1 paisa higher at 83.13 on Tuesday.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the Indian rupee appreciated following recovery in the domestic markets and a soft US dollar. A slight decline in crude oil prices also supported the rupee.
He said the investor sentiment was boosted after the World Bank retained India's growth rate projection at 6.3 per cent for FY24 and 6.4 per cent for the next fiscal.
The rupee is likely to trade with a slight negative bias on risk aversion in the global markets amid the global economic slowdown and the ongoing geopolitical tensions in the Red Sea and Middle East. Also, investors may remain cautious ahead of inflation data from India and the US.
"USD-INR spot price is expected to trade in a range of Rs 82.70 to Rs 83.40," Choudhary added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.16 per cent lower at 102.11 on Wednesday.
