Sensex jumps 567 pts, Nifty ends above 23,150 on recovery in IT, banking shares

Mumbai, Jan 22 (PTI) Benchmark Sensex rebounded nearly 567 points and Nifty regained 23,150 level on Wednesday following value buying in IT and banking shares and firm global trends.

The 30-share BSE Sensex surged 566.63 points or 0.75 per cent to close at 76,404.99, driven by gains in Infosys, TCS and HDFC Bank. During the day, the benchmark surged 624.77 points or 0.82 per cent to hit an intraday high of 76,463.13.

The broader NSE Nifty climbed 130.70 points or 0.57 per cent to settle at 23,155.35. In the intraday session, the Nifty rose 144.9 points or 0.63 per cent to 23,169.55 on the NSE.

The key stock indices had slumped to seven-month lows on Tuesday due to foreign fund outflows and profit-taking by investors amid tariff war worries. Sensex tanked by 1,235 points and Nifty by 320 points.

Recovering its past losses, Infosys surged 3.16 per cent to emerge as the biggest gainer among Sensex scrips. Tata Consultancy Services jumped 2.97 per cent and Tech Mahindra by 2.28 per cent. Sun Pharmaceutical, Bajaj Finserv, HCL Technologies, Bajaj Finance, HDFC Bank, IndusInd Bank and Kotak Mahindra Bank were among the gainers.

Tata Motors was the biggest loser among Sensex shares, dropping by 2.24 per cent. PowerGrid, Axis Bank, State Bank of India, NTPC, Tata Steel and Adani Ports were the major laggards.

“The benchmark indices rebounded amidst heightened volatility following better-than-expected results from a major private bank. The IT sector led gains, recovering from recent losses, while mid and small-cap stocks continued to underperform due to valuation concerns,” Vinod Nair, Head of Research, Geojit Financial Services said.

Broader markets, however, closed lower. The BSE smallcap index slumped 1.56 per cent and midcap gauge declined 1.2 per cent.

Among BSE sectoral indices, Focused IT rose the most by 2.19 per cent, followed by Information Technology by 1.88 per cent, Teck by 1.65 per cent, Bankex by 0.26 per cent and Financial Services by 0.17 per cent.

On the other hand, Realty plunged the most by 4.53 per cent, followed by Industrials (1.88 per cent), Capital Goods (1.82 per cent), Power (1.57 per cent) and Utilities (1.38 per cent) were among the laggards.

Overall market breadth was negative as 2,802 stocks declined while 1,142 advanced and 115 remained unchanged on the BSE. The market capitalisation of BSE-listed companies fell by Rs 2,18,878.25 crore to Rs 4,21,88,327.56 crore or USD 4.87 trillion.

Shares of Cyient DLM plunged 13.55 per cent to close at Rs 515.70 apiece after the electronic manufacturing services firm reported a decline in its December quarter profit.

During the day, the shares of the company slumped over 15 per cent to hit a 52-week low of Rs 506.05 apiece.

The scrip of ICICI Prudential Life Insurance declined 6.04 per cent to end at Rs 597.50 per piece. During the day, it hit decreased 10 per cent to hit an intraday low of Rs 572.35 apiece.

In Asian markets, Tokyo and Seoul were settled on a positive note while Hong Kong and Shanghai closed in the negative territory. European markets were trading higher on Wednesday. Wall Street ended higher on Tuesday.

International oil benchmark Brent Crude was trading 0.49 per cent higher at USD 79.68 a barrel.

Foreign Institutional Investors (FIIs) offloaded shares worth Rs 5,920.28 crore on Tuesday.