Snapping its two-day losing streak, benchmark BSE Sensex closed higher by 150 points on Wednesday following a rally in IT stocks amid a surge in the US markets on renewed hopes of a rate cut by the Fed in September.
The 30-share BSE Sensex rose by 149.85 points or 0.19 per cent to settle at 79,105.88 with half of its constituents ending higher. During the day, it gained 272.91 points or 0.34 per cent to hit a high of 79,228.94.
The NSE Nifty closed marginally up by 4.75 points or 0.02 per cent at 24,143.75. As many 26 Nifty shares closed lower while 24 advanced.
"The domestic market traded within a narrow range; even as global markets saw a positive turnaround. The IT index edged up, reflecting optimism for improved US CPI data expected later today, which could increase the scope of a loose monetary policy from the Fed," said Vinod Nair, Head of Research, Geojit Financial Services.
Among Sensex firms, Tata Consultancy Services rose the most by 2.3 per cent. HCL Technologies, Tech Mahindra, Infosys, Mahindra & Mahindra and Tata Motors were the biggest gainers.
On the other hand, UltraTech Cement, JSW Steel, Tata Steel, Adani Ports, Power Grid and Bajaj Finserv were among the laggards.
Mining shares declined after the Supreme Court rejected the Centre’s plea for prospective effect of its July 25 verdict, which upheld the power of states to levy tax on mineral rights and mineral-bearing land, and allowed them to seek a refund of royalty from April 1, 2005 onwards.
NMDC tanked 6 per cent, Hind Copper by over 4 per cent, Nalco by 2.7 per cent.
"The PPI (Producer Price Inflation) numbers from the US indicate softening of inflation, and a confirmation of this declining trend is likely from the CPI numbers coming today. The US market moved up yesterday in anticipation of this and a rate cut by the Fed in September," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
In the broader market, the BSE smallcap gauge declined 0.57 per cent and midcap index dipped 0.41 per cent.
Among the indices, IT jumped 1.41 per cent, teck surged 1.33 per cent, consumer durables went up 0.13 per cent and consumer discretionary (0.09 per cent).
Commodities, energy, telecommunication, utilities, metal, power, realty and services were the laggards.
In Asian markets, Seoul and Tokyo settled higher while Shanghai and Hong Kong ended lower.
European markets were trading in positive territory. The US markets ended significantly higher on Tuesday.
Equity markets would remain closed on Thursday for Independence Day.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,107.17 crore on Tuesday, according to exchange data, while Domestic Institutional Investors (DIIs) bought equities worth Rs 1,239.96 crore.
Global oil benchmark Brent crude climbed 0.59 per cent to USD 81.17 a barrel.
Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.
