Global cues boost Indian equities; Sensex, Nifty settle over 1% each

MUMBAI: Positive global cues along with bargain hunting supported India's key equity indices' up-move on Wednesday. However, rising Omicron cases as well as continuous outflows of foreign funds capped the gains.

Globally, Asian share markets were broadly up as the risk appetite of global investors rose heading into year-end despite the surging number of Omicron Covid-19 variant cases around the world.

In contrast, European markets were mixed, hovering around the flat-line with investors continuing to digest the risks associated with the Omicron Covid-19 variant heading into the year-end. On the domestic front, volumes were the lowest in 10 months.

Amongst sectoral indices, Realty, Metals, Capital Goods, Auto and Telecom rose the most.

Consequently, the S&P BSE Sensex traded at 56,930.56 points, up 1.09 per cent from its previous close. Similarly, the broader 50-scrip Nifty at the National Stock Exchange (NSE) rose to 16,955.45 points, up 1.10 per cent from its previous close.

"Nifty rose but has halted near the downgap resistance of 16,966," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"In case this resistance is not crossed on December 23, then we could see Nifty correcting the latest rise before rising higher. Once this resistance is crossed, 17,192 could be the next resistance while 16,771-16,840 could be the support band in the near term."

According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services: "The relief rally might continue for some time as the market enters a holiday mood." "However, volatility cannot be ruled out on account of potential risk from Omicron variant and fragile global cues."

In addition, Vinod Nair, Head of Research at Geojit Financial Services said: "Domestic market is gaining ground amid a positive rebound in the global market. The rebound was broad-based while mid and small caps outperform as the bargain opportunity led investors to accumulate the beaten-down stocks."

"The 'Omicron' concerns and FIIs' selling may keep investors in a cautious mode, it is a time for selective stock picking with a focus on defensive and growth-oriented sectors rather than rushing to the market." (IANS)

Also Read:   Sensex Plunges 1,190 Points, Nifty Ends At 16,614 Due To Omicron Fears

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