Markets build on gains for fifth day; Sensex surges 936 points to reclaim 56k-mark

Equity indices marched higher for the fifth session on the trot on March 14, propelled by robust buying in banking and IT counters along with a decline in crude oil prices as hopes of headway in Russia-Ukraine talks boosted risk-on sentiment globally.

European bourses opened higher following reports of tentative progress in talks between Russian and Ukrainian officials, even as Moscow continued its military offensive.

After a cautious start, the 30-share BSE Sensex gained momentum as the session progressed to close 935.72 points or 1.68% higher at 56,486.02.

Similarly, the broader NSE Nifty vaulted 240.85 points or 1.45% to settle at 16,871.30.

Infosys topped the Sensex gainers’ chart, spurting 3.76%, while HDFC Bank climbed 3.25% after the RBI on Saturday lifted all restrictions on the private sector lender, permitting it to launch new digital initiatives.

SBI, Maruti Suzuki, Axis Bank, ICICI Bank, Wipro and HDFC were among the other prominent winners.

Only four Sensex constituents closed with losses — HUL, Sun Pharma, Dr. Reddy’s and Tata Steel, dropping up to 1.66%.

“We are gaining traction as strategy is shifting from tactical sell to tactical buy. Investments are chipping in as commodities prices are reverting. FIIs selling and crude prices are subsiding, which is expected to continue based on diplomatic developments and provide an edge to the domestic market.

“Globally, investors are bracing for rate hikes as expected. Domestic WPI has spiked up however market is ignoring as future prices can get gloomy,” said Vinod Nair, Head of Research at Geojit Financial Services.

The wholesale price-based inflation in February rose to 13.11% on hardening of prices of crude oil and non-food items, even though food articles softened.

After two months of mild easing, WPI inflation accelerated in February and remained in double digits for the 11th consecutive month, beginning April 2021.

The broader market depicted a muted trend, with the BSE smallcap index gaining 0.31%, while the midcap gauge inched up 0.02%.

A total of 1,749 stocks advanced, while 1,723 declined and 140 remained unchanged on the BSE.

On the global front, bourses in Hong Kong and Shanghai settled sharply lower after China imposed a fresh lockdown in Shenzhen following a spurt in COVID-19 cases. Tokyo closed marginally higher.

Stock exchanges in Europe were largely trading in the green in the afternoon session.

Meanwhile, international oil benchmark Brent crude dipped 2.97% to $109.3 a barrel.

The rupee declined by 10 paise to close at 76.54 against the U.S. dollar on Monday.

Foreign institutional investors continued their selling spree in Indian markets as they offloaded shares worth ₹2,263.90 crore on a net basis on Friday, according to exchange data.