Sensex rises over 100 points while Nifty tops 17,500 in early trade

The Sensex climbed more than 100 points in early trading on Wednesday, tracking advances in IT sectors amid continued foreign capital inflows.

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The 30-share Sensex, however, became turbulent, falling 36.75 points, or 0.06 percent, to 58,968.52. Similarly, the Nifty fell 10.45 points, or 0.06 percent, to 17,551.55 in early trade.

HDFC was the Sensex pack’s biggest loser, losing more than 1%, followed by Axis Bank, Tata Steel, Nestle India, HDFC Bank, and HUL.

Tech Mahindra, NTPC, M&M, Titan, and HCL Tech, on the other hand, were among the gainers.

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The 30-share index closed the previous session 514.34 points or 0.88 percent higher at 59,005.27, while the Nifty rose 165.10 points or 0.95 percent to 17,562.

According to provisional exchange statistics, foreign institutional investors (FIIs) were net purchasers in the capital market on Tuesday, purchasing shares worth Rs 1,041.92 crore.

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“Domestic equities look to be soft as of now. Notably, yesterday’s recovery in equities and strong inflow from DIIs and FIIs shows that markets have discounted possible fallout from the likely default of Chinese real estate giant Evergrande, while Thursday would be crucial as USD 83 million interest payment is due for Evergrande on the day,” Binod Modi Head-Strategy at Reliance Securities, said.

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However, given the rising risk of earnings downgrades in US markets as a result of a dramatic increase in coronavirus daily caseload, he added that the government’s ongoing reform efforts in India appear to have rekindled FIIs’ interest in the domestic market.

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US markets ended mixed in the overnight session, with the Dow and S&P 500 extending losses for the fourth day in a row as investors remained cautious ahead of the Fed meeting conclusion and the potential repercussions from Evergrande’s defaults.

In other parts of Asia, bourses in Shanghai and Tokyo were trading in the red. The markets in Hong Kong and Seoul remained closed.

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International oil benchmark Brent crude was up 0.98 percent to USD 75.09 a barrel.

Rupee slips 9 paise to 73.70 against US dollar in early trade.