Banking Stocks Lead Upward Movement of Nifty and Sensex

The BSE Sensex has shown signs of recovery by recording a gain of 162 points yesterday. On Tuesday, the Sensex fell by a whopping 770 points. On Wednesday, the most popular BSE index closed at 36,725 points. On the other hand, the NSE Nifty 50 breached the mark of 10,850 points. 

Banking stocks such as HDFC Bank and ICICI Bank led the benchmark indices towards the upward movement. The BSE Sensex recorded it’s intra-day high at 36,776.31 points. The most significant gainer in the Sensex index was Bharti Airtel, which recorded a rise of 2.97%. 

Apart from that, HDFC Bank rose by 1.7% while ICICI Bank surged by 1.4%. Tata Steel too recorded a significant gain as the value of its stock grew by 2.46%. Vedanta, a mining company, saw an increase of 1.94% while the tech giant HCL Tech advanced by 1.6%. The stocks of NTPC, an electrical PSU, rose by 1.8%. 

The foes of the auto sector don’t seem like ending anytime soon. The stocks of Maruti Suzuki fell by a massive 3.64%. This has possibly come on the back of the firm’s announcement of suspending its operations related to manufacturing in plants located at Manesar and Gurugram in Haryana.

Also Read: Sensex sees spike on second consecutive day, auto stocks on the surge

The Indian stock markets were volatile throughout Wednesday, and the intra-day traders would have made good money if they had made the right calls. The growth stimulus will take some time to weigh on the Indian markets, and until then, the market fluctuations would be inevitable. 

The rise in the benchmark indices has possibly resulted due to the recovery in the Indian rupee. The Indian currency rose by 0.44% against the US dollar on Wednesday. It had hit a fresh low of Rs 72.50 against the greenback. The growth boosters are expected to improve the market conditions and the value of rupee against the dollar. 

Most fast-moving consumer goods (FMCG) stocks ended on a bearish note, while the banking and mining stocks experienced a bullish trend. This is a positive sign as the investors are willing to move from the FMCG stocks that are considered low-risk to stocks of high-risk sectors such as banking and mining.

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