Taking Stock: Nifty reclaims 11,600 as over 160 stocks hit 52-week high on BSE
Markets are expected to be in sync with global cues. Upside seems to be limited considering the lack of fresh domestic triggers for the market.
Rohit Singre, Senior Technical Analyst at LKP Securities
Nifty closed the day at 11,605 with gains of nearly one percent and formed a bullish candle for the second consecutive day.
The index has witnessed fresh breakouts on intra-timeframes which suggests the current pullback can extend up to 11,650-11,700 zone that is strong hurdles on the higher side.
Support has shifted to 11,550-11,500 zone. Nifty Bank closed the day at 22,574 with gains of half-a-percent.
Support for Nifty Bank is near 22,400-22,200 zone and resistance is placed at 22,750-23,000 zone.
Vinod Nair, Head of Research at Geojit Financial Services
Benchmark indices ended the day with gains, with most sectoral indices contributing to the gains.
However, the continued border tensions and unabated virus infections limited the gains.
Global cues were also positive as participants awaited policy statement from the US FOMC meeting. Any indication of increased bond-buying will be a positive trigger for the markets.
Markets are expected to be in sync with global cues tomorrow. Upsides seem to be limited, considering the lack of fresh domestic triggers for the market.
S Hariharan, Head - Sales Trading, Emkay Global Financial Services
Broader markets are witnessing classical signs of rotational flow as mid-caps and small-caps have significantly outperformed headline indices and market breadth has turned encouragingly positive.
The smallcap index is up 5 percent so far this week after SEBI's new regulation pertaining to asset allocation rules for multi-cap funds while Nifty is up 1.5 percent.
Among large-caps, IT and pharma sector have been leaders, with supportive news flow underpinning strong momentum across all these names.
On the other hand, metals names are witnessing distributive price action, banks and financials remain sideways after a failed breakout, while consumer staples appear to forming durable bases.
Market closing: Sensex closed 259 points, or 0.66 percent, higher at 39,302.85 and Nifty settled 83 points, or 0.72 percent, up at 11,604.55.
BSE Midcap and Smallcap indices closed 0.21 percent and 0.44 percent higher, respectively.
Sensex gainers & losers
KKR raises over $11 billion in Asia fund
As per news agency Reuters, private equity powerhouse KKR & Co has raised over $11 billion after the first-close of its fourth Asia-focused fund, its Beijing-based managing director Chris Sun said Wednesday.
KKR started marketing the new Asia fund towards the end of last year before the COVID-19 pandemic, targeting $12.5 billion in what would be the region's biggest private equity fund, people familiar with the situation have said.
Sun, speaking at the AVCJ China Virtual Forum, said China, the world's second largest economy, has been an important market for the fund, adding that Japan, India and Southeast Asia are also its focused markets.
Jateen Trivedi, Senior Research Analyst- Commodity & Currency- at LKP Securities
Rupee extended gains on Wednesday on overseas inflows into local debt and stocks and muted trades in the greenback amid Fed statement due later in the night at 11.30 pm.
FII inflows are heavy in both debt and stocks, while the dollar index has fallen has helped the rupee greatly. Important supports for the USDINR pair are at 73.40-73.20 whereas 73.90-74.10 zone is the resistance.
Deepak Jasani, Head of Retail Research
Addressing the FICCI National Executive Committee Meeting, Reserve Bank of India Governor Shaktikanta Das on September 16 assured that the RBI is closely monitoring economic situation, and the central bank is prepared to take further measures to prepare the economy and banking system to fight the COVID-19 pandemic.
He acknowledged that the economic recovery remains slow and will be gradual. The uptick noticed in some sectors in the economy in the June-July period seems to have levelled off. High frequency indicators of agricultural activity, purchasing managers' index (PMI) for manufacturing and private estimates point to some stabilisation of economic activity in Q2.
Further, bank credit growth remains muted in the system. He hoped that the revival of businesses (due to moratorium or restructuring) will help keep NPAs low.
These reassuring statements helped the Nifty to rise towards the recent highs.