Sensex rallies for fourth day to reclaim 60,000 mark; bank, finance stocks spurt

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Mumbai, January 5

Equity benchmark Sensex stretched its winning run to the fourth straight session on Wednesday to reclaim the 60,000-level as robust gains in banking and financial stocks offset profit-booking in the IT pack.

A rebounding rupee and continuous buying by foreign funds added to the momentum, traders said.

Overcoming a wobbly start, the 30-share BSE Sensex surged 367.22 points or 0.61 per cent to end at 60,223.15. The index last closed above the the key 60,000-mark on November 17, 2021.

Similarly, the broader NSE Nifty climbed 120 points or 0.67 per cent to finish at 17,925.25.

Bajaj Finserv was the top gainer in the Sensex pack, spurting 5.09 per cent, followed by Bajaj Finance, Kotak Bank, Axis Bank, Tata Steel, HDFC Bank, Asian Paints, Maruti and ICICI Bank.

On the other hand, Tech Mahindra, Infosys, HCL Tech, Wipro, PowerGrid and Dr Reddy's were among the major laggards, dropping as much as 2.87 per cent.

Market breadth was in favour of the bulls, with 18 of the 30 Sensex counters logging gains.

"In a highly volatile session, the domestic market witnessed a recovery following a mild dip though the global sentiments were not in favour of bulls. Increasing COVID cases leading to stricter restrictions has pressurised market volatility. The banking sector outshone other sectoral indices as few private lenders reported double-digit business growth during the third quarter.

"IT stocks took a blow as investors awaited the onset of the quarterly results season. US and Asian markets traded weak ahead of the release of the US Fed meeting minutes while European indexes held ground," said Vinod Nair, Head of Research at Geojit Financial Services.

Ajit Mishra, VP - Research, Religare Broking, said markets have witnessed an excellent start to the calendar year but may now take a breather.

"Currently, the banking and finance majors are leading from the front so their performance would hold importance...Besides, the scheduled weekly expiry would add to the volatility. Amid all, traders should opt for trailing stop losses for their existing positions and stay put. However, one should wait for some consolidation or a dip for fresh buying in the index," he noted.

Sectorally, BSE bankex, finance, metal, oil and gas and realty climbed up to 2.43 per cent, while IT, teck, power, healthcare and consumer durables nursed losses.

Broader markets were mixed, with the BSE midcap index advancing 0.36 per cent, while the smallcap gauge dipped 0.08 per cent.

Global markets too witnessed a mixed trend as rising US Treasury yields and growing Omicron cases weighed on sentiment.

Elsewhere in Asia, bourses in Shanghai, Hong Kong and Seoul ended in the red, while Tokyo was positive.

Stock exchanges in Europe were trading with smart gains in mid-session deals.

Meanwhile, international oil benchmark Brent crude slipped 0.01 per cent to USD 79.99 per barrel.

The rupee surged 20 paise to close at 74.38 against the US dollar on Wednesday.

Foreign institutional investors (FIIs) were net buyers in the capital market, buying shares worth Rs 1,273.86 crore on Tuesday, according to stock exchange data. PTI

The Tribune