NEW DELHI, Sep 23: Indian equity benchmarks closed higher on Wednesday, with the Sensex gaining nearly 300 points and the Nifty settling above the 23,400 mark, as buying in metal and banking stocks offset weakness in information technology shares.
The BSE Sensex rose 299.17 points, or 0.40 per cent, to close at 74,828.25. The NSE Nifty 50 advanced 117.80 points, or 0.50 per cent, to settle at 23,446.80.
The broader market also ended on a positive note. The Nifty Midcap 100 and Nifty Smallcap 100 indices gained 0.69 per cent and 0.88 per cent, respectively, indicating continued participation beyond the benchmark stocks.
Sectorally, metals and banking shares led the gains, while the IT index remained under pressure and ended lower by around 1 per cent. The metal pack rose about 2 per cent during the session. FMCG stocks also outperformed, with Radico Khaitan, United Spirits and United Breweries among the notable gainers in the sector.
Market participants said domestic equities remained supported despite volatility in crude oil and currency markets. A stronger-than-expected September flash PMI helped reinforce expectations of resilient domestic economic activity, while relatively contained inflationary pressures provided additional comfort to investors.
Geopolitical developments surrounding the UN General Assembly kept a risk premium in crude prices, while a firmer US dollar weighed on the Indian rupee. Despite these external pressures, Indian equities tracked gains across Asian markets.
“Indian equities ended higher despite intraday volatility, as markets shrugged off an intraday surge in crude and focused on signs of strengthening domestic growth momentum,” said Sudeep Shah, vice president, technical and derivatives research at SBI Securities.
On the technical front, Shah said the 23,300-23,270 zone could provide crucial support for the Nifty. A sustained break below 23,270 could bring the index towards 23,150, he said.On the upside, 23,600-23,620 is likely to act as an immediate resistance zone. A sustained move above 23,620 could trigger short covering and extend the pullback towards 23,750, according to Shah.
In individual stocks, Pearl Global Industries gained 10 per cent to hit a fresh high of Rs 1,309 on the BSE after the company announced the setting up of a manufacturing facility in Bangladesh.
In the primary market, Swastik Infra’s initial public offering was subscribed 0.61 times on the first day. The issue received bids for 0.15 times the shares reserved for qualified institutional buyers, while the non-institutional investor portion was subscribed 1.45 times and the retail portion 0.51 times.
Investors also remained focused on the upcoming listing of the National Stock Exchange following the completion of its Rs 22,562-crore initial public offering, which saw relatively subdued participation from retail investors.
The session ended with benchmarks holding onto most of their intraday gains, while broader-market participation remained firm.
