Key equity indices the Sensex and the Nifty closed in the positive territory for the fifth consecutive session on March 14 as investors continued buying in Indian equities amid hopes that Russia and Ukraine will agree to resolve their dispute in the next phase of talks.
Ukraine said it would seek to discuss a ceasefire, immediate withdrawal of troops and security guarantees with Russia on March 14 after both sides reported rare progress at the weekend, said a report from news agency Reuters.
Crude oil prices also eased which gave further relief to the investors. Brent crude futures fell as much as $4 a barrel, trading near $108 a barrel. The rupee gained nearly 3 paise to close at 76.56 against the US dollar.
Sensex closed 936 points, or 1.68 percent, higher at 56,486.02 while Nifty settled at 16,871.30, up 241 points or 1.45 percent.
However, mid and smallcaps underperformed the benchmarks as the BSE Midcap index closed flat while the smallcap index gained 0.31 percent.
Among the sectors, BSE IT closed 2.16 percent higher while BSE Tech closed with a gain of 2.15 percent. On the flip side, BSE Realty fell 1.73 percent. Oil & gas (down 0.85 percent), power (down 0.60 percent) and utilities (down 0.56 percent) also ended in the red.
Market Cap Jump
The overall market capitalisation of BSE-listed firms jumped to ₹254.3 lakh crore from ₹252.8 lakh crore in the previous session, making investors richer by ₹1.5 lakh crore in a single day.
More than 120 stocks, including Triveni Engineering & Industries, Balrampur Chini Mills, Cipla, Sun Pharma, Dhampur Sugar Mills and Dwarikesh Sugar Industries, hit their fresh 52-week highs on BSE.
"We are gaining traction as strategy is shifting from tactical sell to tactical buy. Investments are chipping in as commodities prices are reverting. FIIs selling and crude prices are subsiding, which is expected to continue based on diplomatic developments and provide an edge to the domestic market. Globally, investors are bracing for rate hikes as expected," said Vinod Nair, Head of Research at Geojit Financial Services.
The market's recent gain has boosted investor sentiment but the looming risk of inflation is a serious concern that can weigh on investor sentiment in the near term.
India's inflation based on the Wholesale Price Index (WPI) surged to 13.11 percent in February as compared to the 12.96 percent rise in January, according to data released by the Commerce Ministry on March 14. The retail inflation, or the consumer price index (CPI), is expected to be released in the evening today.
"Upbeat global cues combined with bargain hunting in index majors are pushing the markets higher. Markets will first react to the inflation data in early trade on Tuesday. Besides, updates on prevailing geopolitical tension and the performance of global markets will remain in focus," said Ajit Mishra, VP - Research, Religare Broking.
"Since Nifty has surpassed the critical hurdle at 16,800, it can extend the rebound to a 17,100+ zone. In case of any dip, 16700 would act as immediate support. Meanwhile, participants should maintain their focus on sector/stock selection," Mishra added.
