Domestic equity barometer Sensex ended in the green after four consecutive sessions of losses on December 8 amid mixed global cues even as concerns over economic slowdown after a prolonged phase of rate hikes continued weighing on sentiment.
Sensex opened 93 points higher at 62,504 and traded volatile during the session. It closed 160 points, or 0.26 percent, higher at 62,570.68 while the Nifty settled at 18,609.35, up 49 points, or 0.26 percent.
Mid and smallcaps also ended higher; the BSE Midcap index rose 0.43 percent and the Smallcap index settled with a gain of 0.32 percent.
PSU bank stocks continued hogging the limelight. The Nifty PSU Bank index jumped 3.8 percent with shares of Central Bank of India jumping more than 15 percent on the NSE, followed by those of Punjab & Sind Bank (up 10 percent) and Bank of India (up 9 percent).
"With the RBI's credit policy overhang now behind them, investors bought selectively in banking, metal and automobile stocks, although the undertone remained cautious ahead of next week's US Federal Reserve meeting on the interest rate," Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, pointed out.
"Central banks have in fact given more hints that interest rate hikes would continue next year, which investors fear could lead to a likely recession in the Western countries and the US and subsequently impact growth," said Chouhan.
Axis Bank, IndusInd Bank and Larsen & Toubro ended as the top gainer stocks in the Sensex index. On the flip side, Sun Pharma, Power Grid and TCS ended as the top laggards in the benchmark index.
Among the sectoral indices, other than the Nifty PSU Bank index, Nifty Bank rose 1.16 percent and the Private Bank index moved 1.17 percent higher.
Conversely, Nifty Pharma fell 1.10 percent while Realty (down 0.78 percent), Consumer Durables (down 0.27 percent) and IT (down 0.24 percent) also ended lower.
"After touching a record high, the domestic market experienced significant volatility as global markets tumbled due to fear of an economic slowdown and worries over a Fed rate hike. Recession fears weighed on IT and pharma stocks while banks, especially PSBs, continued to support the bourses," said Vinod Nair, Head of Research at Geojit Financial.
Some 136 stocks, including Axis Bank, Larsen & Toubro, Bank of Baroda, Bank of India, Central Bank of India, Indian Bank, Indian Overseas Bank, Jammu and Kashmir Bank, Bank of Maharashtra, Punjab National Bank, United Breweries and UCO Bank, hit their 52-week highs in intraday trade on BSE.
Crude oil prices rose on optimism over easing Covid restrictions in China. Benchmark Brent Crude traded almost a percent higher at $78 per barrel.
The rupee rose 5 paise to settle at 82.43 per dollar amid gains in the equity market. But the domestic unit's advance was capped as the greenback witnessed buying by investors.
Technical view by expert
Rupak De, Senior Technical Analyst at LKP Securities observed Nifty witnessed a lacklustre trading session as the index failed to give any directional move.
"For any meaningful directional move, Nifty needs to go below 18,500 decisively or above 18,700 on a sustained basis. Support below 18,500, is pegged at 18,350 and 18,200. On the other hand, above 18,700, resistance is visible at 18,900," said De.
As per Nagaraj Shetti, Technical Research Analyst, HDFC Securities, a small positive candle was formed on the daily chart at the support of 18,550-18,500 levels, but the upside momentum was muted.
"The rangebound action continued in the Nifty and the immediate support of 18,550-18,500 levels remains active. Positive chart patterns like higher tops and bottoms continued on the daily chart and the overall chart pattern signals positive bias for the short term. Immediate resistance is at 18,650 levels," said Shetti.
Key market data
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.