However, market volatility may continue ahead of RBI meet
Benchmark equity indices rose sharply on Wednesday as investor confidence grew after the appointment of a new governor for the Reserve Bank of India (RBI) and the State election results fuelling hopes that the government would increase rural spending, among other things, to boost the economy ahead of the Lok Sabha polls next year. The benchmark Sensex rose 629.06 points or 1.79% to close at 35,779.07 as all 30 constituents of the benchmark gained ground. Stocks like Hero Motocorp, Yes Bank, Bharti Airtel, Adani Ports, Tata Steel and Tata Motors all gained more than 3% each on Wednesday. The overall market breadth was also strong with more than 1,900 stocks gaining ground as against 678 declines. The broader Nifty ended the day at 10,737.60, up 188.45 points or 1.79%. “Buying was majorly seen across all segments such as autos, metals, banks, infrastructure and consumption names,” said Hemang Jani, head — advisory, Sharekhan. “However we expect the markets to be volatile ahead of the RBI board meet on December 14. Market participants will closely watch the comments coming from the new RBI Governor Shaktikanta Das and the measures taken by him in the coming days,” he added.
Rupee slips 0.22%
The rupee slipped 16 paise, or 0.22%, and crossed the 72-a-dollar mark on Wednesday on dollar strengthening and rising crude oil prices. After opening weak, the rupee slipped to 72.19 before cutting some losses to end the day at 72.01. It had ended Tuesday at 71.85. Brent crude, the international benchmark, was trading at $61.17 per barrel on Wednesday, higher by 0.5%. The widening current account deficit, at 2.9% of GDP for July-September due to higher trade deficit, is also weighing on the rupee.