New Delhi, Oct 14 | Expectation of a favourable judgement on interest waiver during the moratorium period buoyed the Indian equity markets during Wednesday’s trade session.
The indices pared initial losses that occurred due to global cues, profit booking and the IMF’s prediction of GDP contraction to close on a positive note.
Besides, volumes on the NSE were in line with recent average and BFSI stocks were the star performers for the day.
Apart from BFSI, metals, media and FMCG stocks ended marginally in the positive whereas all other sectors closed in the red.
Globally, Asian equities slipped on Wednesday as trials for a prospective Covid-19 vaccine were halted and an impasse in US fiscal aid package talks dented risk appetite.
The S&P BSE Sensex closed at 40,794.74, higher by 169.23 points, or 0.42 per cent, from its previous close.
The Nifty50 traded at 11,971.05, higher by 36.55 points or 0.31 per cent, from its previous close.
“The smart recovery in the frontline indices has raised hopes in the minds of traders,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
“A move above 12,022 will lead to a broader rally in the market.”
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “Indian equity markets opened lower but witnessed sharp recovery in the last hour of trade, to finally close in green.”
“However, late buying in banking and financials in expectation of a favourable judgment by SC on the loan moratorium case, which was postponed to Nov 2nd, led to the recovery in the market.”
Vinod Nair, Head of Research at Geojit Financial Services said: “Banking stocks are displaying a positive change-in-trend in expectation of a favourable judgement on interest waiver, ending the conflicting saga of moratorium which has heavily impacted the performance of the finance sector.”
“A supportive judgement from the Supreme Court and continuity of the good Q2 result will help India to add more traction.”