Mumbai's financial markets showed resilience on Wednesday, with the BSE Sensex surpassing the 66,000 mark, reaching 66,005.20, and the Nifty 50 index climbing to 19,809.55. The upswing was driven by heavyweight Reliance Industries amid a broader global market recovery, despite continued foreign fund withdrawals.
The Indian equity benchmarks' performance mirrored gains in other Asian markets and came after a session on Tuesday that also ended on a positive note. The Sensex closed at 65,930.77 and the Nifty settled at 19,783.40 the previous day. This upward momentum was attributed to softer US bond yields, which stood at around 4.41%, and strong buying in large-cap stocks such as Bharti Airtel and HDFC Bank.
Despite the overall market gains, some sectors showed contrast on Wednesday with Realty and Metal sectors dipping close to half a percent each, while Pharma ascended by nearly .75%. Titan led the earners at the start of the day's trading session while Kotak Bank trailed among decliners.
The positive sentiment in Mumbai's markets seems to be part of a broader trend across Asian exchanges, including Seoul, Tokyo, and Shanghai, reflecting optimism in global markets. However, this comes against the backdrop of a slight downturn in the Indian currency, which closed around the mid-83 versus the dollar on Tuesday.
Brent crude oil also experienced a slight dip in price, settling at $81.96 per barrel on Tuesday. The fluctuations in oil prices are closely watched by market participants due to their impact on global economic conditions and inflationary pressures.
Investors continue to monitor foreign institutional activity closely as they offloaded equities totaling ₹455.59 crore (INR100 crore = approx. USD12 million) on Tuesday. Despite these outflows, domestic buying activity and macroeconomic factors have provided support to the market's rally.
The performance of Mumbai's stock market earlier in the week had been less favorable with modest declines noted on Monday when the Sensex dropped by 139.58 points to close at 65,655.15 and Nifty decreased by 37.80 points to end at 19,694.
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