Domestic equity benchmarks the Sensex and the Nifty clocked decent gains on October 20, extending gains into the fifth consecutive session.
However, the gains were capped due to weak global cues and a rise in crude oil prices. Crude oil prices rose amid reports that China may ease Covid quarantine measures. Brent Crude traded more than a percent higher.
Global cues were weak and major Asian and European peers were lacklustre as imminent rate hikes weighed on sentiment.
"Stocks sagged and bond yields firmed on Thursday as looming central bank rate meetings cast a shadow over largely resilient corporate earnings so far which have failed to dispel downbeat investor sentiment," reported Reuters.
Sensex rose 96 points, or 0.16%, to 59,202.90 while the Nifty ended the day at 17,563.95, up 52 points, or 0.30%. Mid and smallcaps underperformed as the BSE Midcap fell 0.30% while the Smallcap index ended flat.
The rupee fell to a record low of 83.29 per dollar in intraday trade but recovered later. It ended 27 paise higher at 82.75.
Shares of HCL Tech, Tech Mahindra, NTPC, Power Grid and Bajaj Finserv ended as the top gainers while those of IndusInd Bank, Asian Paints, UltraTech Cement, HDFC Bank and Titan ended as the top laggards in the Sensex index.
"Markets are digesting the recent gains, however, the tone is still positive, thanks to noticeable buying interest on every dip. However, we see limited participation across sectors so the focus should remain on stock selection. Further recovery in the global indices, especially the US, would strengthen the trend and help the Nifty to reach the 17,800 levels," said Ajit Mishra, VP of Research, Religare Broking.
Among the sectors, BSE Oil & Gas, Utilities, Power, Energy, IT and Teck rose more than a percent each.
Palak Kothari, Senior technical analyst of Choice Broking observed that the Nifty has been trading with the support of 21HMA (hourly moving average) and given the closing above the same suggests strength for the upside.
"The hourly momentum indicator 'stochastic' was trading with a positive crossover which suggests a downside moment in the upcoming session. The support for Nifty has shifted around 17,350 while on the upside, 17,600 may act as an immediate hurdle," said Kothari.
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