Equities rise aided by European markets, investors eye RBI’s policy and US data

Despite initial volatility, India’s equity benchmark indices registered gains on Wednesday, largely driven by last-minute buying in prominent companies such as Reliance Industries, ITC, and M&M, coupled with a positive opening in European markets.
Most investors treaded cautiously throughout the trading session, given the impending announcements of the RBI’s monetary policy and the US inflation data set for Thursday. The BSE Sensex added 149.31 points, marking a 0.23% rise, concluding at 65,995.81. Intriguingly, it had slumped to 65,444.38 at one point, a 0.61% decline, before rallying to a high of 66,066.01. Meanwhile, the NSE Nifty ascended by 61.70 points or 0.32%, finishing at 19,632.55.
Shrikant Chouhan, Head of Research (Retail) at Kotak Securities Ltd., analysed the market dynamics. “A resurgent European market, coupled with robust performance in the metals, oil & gas, and auto sectors, fueled a late market recovery after two subdued days. However, sentiments were initially overshadowed by Moody’s alarming indication of a potential downgrade of six US banks and the tepid export figures emerging from China.” Leading the gainers on the Sensex was JSW Steel with a 2.68% surge, followed closely by major players including Tata Motors, Mahindra & Mahindra, and Tata Steel, among others. On the flip side, Bajaj Finance, Maruti, and ICICI Bank faced a downturn. The broader market indices also painted a positive picture, with the BSE smallcap rising 0.57% and the midcap index progressing 0.39%.