After initial loss, stocks regain momentum, indices gain 1%

Equity benchmark indices Sensex and Nifty rebounded sharply by 1 per cent on Wednesday after sliding for the past two sessions, propelled by bargain hunting in metal, commodity and telecom stocks.

Trading through a patchy track in the opening session, the 30-share BSE Sensex gradually gained ground and jumped 689.76 points, or 0.98 per cent, to settle at 71,060.31. The benchmark moved between an intra-day high of 71,149.61 and a low of 70,001.60.

The broader NSE Nifty also closed 215.15 points or 1.01 per cent higher at 21,453.95.

Among the Sensex firms, major winners included Tata Steel, rising 3.77 per cent, followed by HCL Tech, which gained 3.62 per cent.

IndusInd Bank and PowerGrid closed with a gain of 3,60 and 3.34 per cent, respectively. Other gainers were Tech Mahindra, Hindustan Unilever, Bajaj Finserve and Bharti Airtel, among others.

On the other hand, ICICI Bank, Axis Bank, Asian Paints, Bajaj Finance and TCS were the only laggards, sliding up to 2.94 per cent.

A total of 25 stocks of the 30-share benchmark settled in green, while 43 constituents of the NSE Nifty witnessed gains.

Elsewhere in Asia, Japan's Nikkei 225 lost 0.80 per cent, and Hong Kong's Hang Seng gained sharply by 3.56 per cent. China's Shanghai Composite also ended 1.80 per cent higher.

European markets were higher on Wednesday, with Germany's DAX and CAC 40 of France gaining 1.00 per cent and 0.58 per cent. London's FTSE 100 rose 0.29 per cent.

In the US markets, the Dow closed 0.25 per cent lower on Tuesday, while the S&P 500 settled 0.29 per cent higher and tech-heavy Nasdaq closed the session 0.43 per cent higher.

Meanwhile, Brent crude futures, the

On Tuesday, Sensex fell 1,053.10 points or 1.47 per cent to settle at 70,370.55. Nifty also declined 330.15 points or 1.53 per cent to close at 21,241.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth Rs 3,115.39 crore, according to exchange data.

Rupee moves up

The rupee stayed range-bound and settled 2 paise (provisional) higher at 83.13 against the US dollar on Wednesday.

Forex traders said the rupee is trading in a narrow range as positive domestic markets and a soft US dollar supported the rupee while rising crude oil prices and foreign fund outflows capped gains.

At the interbank foreign exchange market, the local unit opened at 83.15 against the greenback. The unit oscillated between an intraday low of 83.16 and a high of 83.11 against the greenback and finally settled at 83.13 against the dollar, higher by 2 paise (provisional) from its previous close.

On Tuesday, the rupee had settled at 83.15 against the US dollar.

"We expect the rupee to trade with a slight positive biand as the US Dollar has softened ahead of PMI data and gains in the Japanese Yen. Markets expect PMI data to be better than the previous month’s reading. However, concerns over the Red Sea region and elevated crude oil prices may cap the sharp upside," said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

Traders may remain cautious ahead of PMI data from Germany, the Eurozone, the UK and the US today. Investors may remain cautious ahead of the US GDP and ECB monetary policy decision on Thursday. USD/INR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.48 per cent lower at 103.11 on Wednesday.

"US Dollar declined on strong Yen on rising expectations that Bank of Japan may normalise its monetary policy in the coming months," Choudhary added.

Brent crude futures, the global oil benchmark, were trading higher by 0.58 per cent to $ 80.01 per barrel on Wednesday.

Oil gains

Crude oil prices on Wednesday increased Rs 56 to Rs 6,234 per barrel in futures trade as participants widened their positions following a firm spot demand.

On the Multi Commodity Exchange, crude oil for February delivery traded higher by Rs 56, or 0.91 per cent, at Rs 6,234 per barrel in 11,266 lots.

Analysts said raising of bets by participants kept crude oil prices higher in futures trade.

Globally, West Texas Intermediate crude oil was up by 0.58 per cent to $74.80 per barrel, and Brent crude futures were trading higher by 0.58 per cent to $ 80.01 per barrel on Wednesday.