Sensex Ends Higher After Volatile Session Amid Cautious Sentiment
The Indian stock market closed in the green after a volatile session on Wednesday, as Sensex rose 123.42 points or 0.15% at 82,515.14 and Nifty was up 37.15 points or 0.15% at 25,141.40. The market witnessed a lot of volatility throughout the session, reflecting cautious sentiment among investors. Despite the ups and downs, the benchmark indices managed to end the day in positive territory, thanks to buying in select stocks.
The Sensex, which had opened with a gain of over 200 points, slipped into the red in the morning session as selling pressure mounted. However, the index staged a smart recovery in the afternoon, driven by buying in heavyweights such as Reliance Industries, HDFC Bank, and ICICI Bank. The Nifty50 also followed a similar pattern, slipping into the red in the morning but rebounding in the afternoon to end with a gain.
The market’s volatile performance was attributed to a mix of factors, including concerns over the rising Omicron variant of COVID-19, geopolitical tensions, and inflationary pressures. Investors remained cautious ahead of the release of key macroeconomic data, including the Consumer Price Index (CPI) and the Industrial Production (IIP) numbers.
The CPI data is expected to give an insight into the pace of inflation, which has been a major concern for policymakers and investors alike. The IIP numbers, on the other hand, will provide an indication of the pace of industrial activity in the country. The data is expected to be released later this week, and investors are keenly awaiting the outcome.
Despite the volatile session, some sectors such as banking, financials, and auto managed to outperform the broader market. The banking index rose 1.2% as buying in stocks such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank lifted the index. The financials index also gained 1.1% as investors snapped up stocks such as Reliance Capital and Bajaj Finance.
In the auto space, the index rose 0.8% as buying in stocks such as Maruti Suzuki, Hero MotoCorp, and Tata Motors lifted the index. The sector has been a major beneficiary of the government’s push for electric vehicles and the recent announcements on policy support for the industry.
On the other hand, some sectors such as IT and pharma failed to participate in the rally. The IT index slipped 0.4% as selling in stocks such as TCS, Infosys, and HCL Technologies pulled the index down. The pharma index also fell 0.3% as investors sold stocks such as Sun Pharma, Dr Reddy’s, and Cipla.
In terms of individual stocks, Reliance Industries was the top gainer in the Sensex pack, rising 2.1% as investors snapped up the stock on hopes of a strong quarterly earnings report. HDFC Bank and ICICI Bank also rose 1.5% and 1.3%, respectively, as investors bet on the banks’ ability to pass on the interest rate hike to their customers.
In conclusion, the Indian stock market ended higher after a volatile session, reflecting cautious sentiment among investors. The market’s performance was affected by a mix of factors, including concerns over the Omicron variant, geopolitical tensions, and inflationary pressures. Investors are now awaiting the release of key macroeconomic data, including the CPI and IIP numbers, which are expected to provide an insight into the pace of inflation and industrial activity in the country.
