The Indian equity benchmarks staged a bounce back on Wednesday, March 5, after posting their longest losing streak in a decade in the previous session. The surge came on the back of reports of easing trade tensions. The 30-share SENSEX rose as much as 943.87 points to hit an intraday high of 73,933.80 and NIFTY50 index touched an intraday high of 22,395, rising as much as 312 points, data from the stock exchanges showed.
As of 12:44 pm, the SENSEX was up 901 points at 73,890 and NIFTY50 index advanced 295 points to 22,377.
United States Secretary of Commerce Howard Lutnick on Tuesday hinted that President Donald Trump could consider some tariff relief for Canada and Mexico.
He said that the President is going to “figure out” which would involve reducing some of the 25% tariffs on imports from Canada and Mexico.
In an interview with Fox Business, Lutnick said, “Both the Mexicans and the Canadians were on the phone with me all day today trying to show that they’ll do better, and the president’s listening, because you know he’s very, very fair and very reasonable.”
Back home, analysts said that the benchmarks took support at the 500 day exponential moving average which is placed at 21,917 for NIFTY50 and 72,529 for the SENSEX. Meanwhile, after relentless selling, the markets went into the oversold zone as indicated by the relative strength index (RSI). The RSI for NIFTY50 is currently at 21.8, a reading below 30 indicates that the index is in an oversold territory.
KPIT Tech, Persistent Systems, Cyient, Vodafone Idea and Birlasoft also rose between 3.75-6.2%.
Nifty Oil & Gas, Realty, PSU Bank Metal, Media, IT and Auto indices also rose over 2% each.
Broader markets were also witnessing buying interest as Nifty Midcap 100 and Nifty Smallcap 100 indices rose nearly 2% each.
Trent was top gainer in the NIFTY50 basket of shares, the stock rose 5.5% to ₹5,274.95 after it informed exchanges that it is holding an investor meeting with investment management company Lord Abbett.
Mahindra & Mahindra, Power Grid, Adani Enterprises, Adani Ports, Tata Steel, NTPC, Eicher Moto₹and Tata Moto₹also rose 2.7-4%.
On the flipside, Bajaj Finance, HDFC Bank, Grasim and IndusInd Bank were among the notable losers.
The overall market breadth was extremely positive as 3,111 shares were advancing while 667 were declining on the BSE.
