Fag-end selling erodes initial gains

Mumbai: Equity benchmark indices Sensex and Nifty ticked higher for the fourth straight session on Wednesday, helped by buying in metal and commodity stocks amid a positive trend in global equities. However, intense selling pressure on telecom, IT and tech counters capped the upside, traders said. The 30-share BSE Sensex climbed 114.49 points or 0.16 per cent to settle at 73,852.94. During the day, it jumped 383.16 points or 0.51 per cent to 74,121.61. The NSE Nifty advanced 34.40 points or 0.15 per cent to 22,402.40.

The indices witnessed some selling pressure towards the fag-end of the session that erased some initial gains.

“Indian markets lagged the Asian peers as Q4 earnings remained largely subdued with weak results from IT and a few index heavyweights results also disappointed. However, buoyed by strong manufacturing and service sectors, the Indian composite PMI hit a multi-year high, reflecting domestic resilience and bringing some buoyancy in the broad market. Globally, investor sentiment improved with easing tensions in the Middle East and declining oil prices,” said Vinod Nair, head (research), Geojit Financial Services.

“Global markets turned positive as geopolitical tension in the Middle East eased off, and investors focus now on the earning season. Following its global peers, healthy domestic macro data and in-line Q4 results led to an up-move in the Nifty,” Siddhartha Khemka, head (retail research), Motilal Oswal Financial Services Ltd.

In the broader market, the BSE smallcap gauge climbed 0.79 per cent and midcap index advanced 0.92 per cent. Among the indices, metal climbed 2.83 per cent, commodities (1.62 per cent), industrials (1.13 per cent) and oil & gas (0.96 per cent) were the major gainers. IT, telecommunication and teck were the laggards. India's economic activity continued to expand in April, driven by services and manufacturing sectors.