After a wild swing, Sensex gains 359 points on value buying

The stock market witnessed a roller-coaster ride, with benchmark indices opening with a gap down from the previous close on profit-booking after indices hit a new high on Wednesday and a weak global market trend.

Earlier, weak European and Asian indices weighed on Indian investors sentiment, but the strong growth prospects with falling crude oil prices and a stable interest rate made investors turn bullish.

Investor wealth measured by the total market cap of BSE-listed companies was up by ₹4.18-lakh crore, taking the overall valuation to ₹354-lakh crore.

The Sensex opened low by 586 points at 69,921 from the previous close of 70,506. It touched a high of 70,959 before closing with a gain of 359 points at 70,865. Nifty gained 105 points to close at 21,255.05.

Losers and gainers

BPCL, Power Grid Corporation, Britannia Industries, HDFC Bank, and Hindalco Industries were the top gainers on the Nifty, while Bajaj Auto, Bajaj Finance, Axis Bank, HCL Technologies, and Cipla were the top losers.

Deepak Jasani, Head (Retail Research), HDFC Securities, said after witnessing the worst sell-off in 10 months, the Nifty rebounded on all-round buying, and cash market volumes on the NSE were high at ₹1.27-lakh crore.

Select PSU shares came back in favour in terms of volumes and gains, while Bank Nifty Futures recovered almost all the losses of the previous session, even as it ended with a premium to cash compared to the discount on the previous session, he said.

Global equities mostly fell on Thursday following the overnight losses on Wall Street, with investors taking some of the recent profits off the table as the trading year nears the end amid warnings that the market had surged too far and too fast, he added.

Siddhartha Khemka, Head (Retail Research), Motilal Oswal Financial Services, said though the market saw profit booking yesterday, the underlying sentiments remain positive given robust micro and macro domestic factors.

Some of the niche sectors, including defence, were in focus after companies received orders from the government. However, going ahead, markets may move in a range as investor participation is expected to gradually decline globally ahead of Christmas and the New Year holiday, he said.

Sameet Chavan, Technical Analyst at Angel One, said investors should avoid getting carried away at higher levels, and most probably benchmark indices will gyrate in a broad range.

After the brutal knock on Wednesday, the mid- and small-cap space had a remarkable recovery, and it would be interesting to see whether they could sustain it.

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