Indian stocks staged a strong recovery in the final hour of the session on Wednesday thanks to hectic buying at some frontline counters, including Reliance Industries and in the banking space, after having plunged sharply by early afternoon after a weak start.
With markets in Asia turning in a mixed performance, and the Reserve Bank of India scheduled to announce its monetary policy on Thursday, the mood remained cautious.
The benchmark BSE Sensex, which had tumbled to 51,450.58 at one stage, losing about 484 points in the process, eventually ended the day with a loss of just 85.40 points or 0.16% at 51,849.48.
The Nifty ended with a small gain of 1.35 points or 0.01 percent at 15,576.20, recovering well from a low of 15,459.85.
The Nifty PSU Bank Index climbed more than 3 percent. Sector heavyweight State Bank of India gained 1.1 percent. Central Bank of India soared nearly 10 percent and Maharashtra Bank surged up 8.9 percent. IOB, Punjab National Bank, Indian Bank and Punjab & Sind Bank gained 5 to 6 percent. Bank of India, Canara Bank, Bank of Baroda and Union Bank of India also rose sharply.
Metal stocks were in demand. The Nifty Metal surged up 2.18%. Adani Enterprises, up 9.5%, was the biggest gainer in the sector. Vedanda, Tata Steel, Welcorp, Hindalco and JSW Steel moved up 1.8 to 3 percent.
Reliance Industries gained about 1.8 percent, contributing significantly to market’s recovery from lower levels. HDFC Life, SBI Life, Tata Motors, Maruti Suzuki and Bajaj Auto also closed with strong gains.
ITC shed nearly 3 percent after reporting a slight drop in earnings. The company reported standalone profit of Rs 3,748.4 crore for the quarter ended March 2021, compared to Rs 3,797 crore reported in the year-ago quarter.
Market Analysis
Indian Market Trims Losses In The Final Hour, Settles Flat
2021-06-02 11:02:07
