Despite FII outflows, mkts further recover

Mumbai: Stock market benchmark indices Sensex and Nifty surged nearly one per cent on Wednesday, buoyed by a rally in IT, capital goods and industrial stocks amid a firm trend in global markets. However, unabated selling by foreign investors ahead of the Union Budget kept market sentiment extremely cautious, traders said.

The 30-share BSE benchmark Sensex jumped 631.55 points or 0.83 per cent to settle at 76,532.96. During the day, it jumped 698.32 points or 0.92 per cent to 76,599.73. As many as 2,978 stocks advanced while 1,011 declined and 93 remained unchanged on the BSE. The NSE Nifty soared 205.85 points or 0.90 per cent to 23,163.10.

“The Indian market has demonstrated resilience in anticipation of the upcoming Union Budget, with expectations of measures, aimed at stimulating consumption and job creation. Investors are now focusing on the upcoming FOMC meeting, with general expectations that the Fed will maintain its current hawkish stance,” said Vinod Nair, head (research), Geojit Financial Services.

“Most key sectors contributed to the recovery. However, the highlight of the session was the strong rebound in broader indices. Looking ahead, market participants will react to the US Fed meeting outcome in early Thursday trades,” added Ajit Mishra, Sr V-P (research), Religare Broking Ltd.