The Nifty closed at 17,136.55, up 177.90 points, or 1.05%, over the previous day. The Sensex ended at 57,037.50, up 574.35points, or 1%. Shares of automobile and cement companies led the rebound. Reliance Industries gained 2.9%. HDFC and HDFC Bank, which have been at the receiving end of bears, rose 2% and 0.8%, respectively, in a relief rally.
“Till the time the Nifty doesn’t surpass the 17,350 zone, the overall medium-term setup could find pressure at higher zones,” said Siddhartha Khemka, head – retail research, Motilal Oswal Financial Services. “A spike in volatility after the declines of the last six weeks is also causing some discomfort among the bulls.”
Till Tuesday, the Nifty had lost 4.6% and the Sensex had slid 5% in five days.
Overseas investors continued pulling out of India, dumping stocks worth ₹3,009 crore on Wednesday. Domestic institutions were buyers to the tune of ₹2,645.82 crore.
Renewed selling by foreign funds amid heightened worries about the US Federal Reserve resorting to aggressive monetary tightening to contain inflation is keeping the markets on the edge. Global investors will watch Fed chair Jerome Powell’s comments on interest rates in an event hosted by the International Monetary Fund on Thursday. European Central Bank President Christine Lagarde will also attend the event.
So far in April, foreign investors have net sold Indian shares to the tune of ₹11,900 crore. They have pulled out ₹1.24 lakh crore since January.
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