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Sensex Rebounds On Back Of Financial, Consumer Stocks

The NSE Nifty 50 index rose 1.13 per cent to 15,989.8, while the S&P BSE Sensex climbed 1.16 per cent to 53,750.95, with both indexes marking their best session since June 21

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Indian shares posted their best session in two weeks on Wednesday as finance and consumer goods stocks gained, with an overnight slide in crude prices soothing some inflation worries.

The NSE Nifty 50 index rose 1.13 per cent to 15,989.8, while the S&P BSE Sensex climbed 1.16 per cent to 53,750.95, with both indexes marking their best session since June 21.

Crude oil prices tumbled 9 per cent on Tuesday, hit by worries of demand destruction, before clawing back some losses on Wednesday. Lower crude prices benefit India, the world's third-largest importer of oil. 

"Bulls sprung back to life amidst short covering as Nifty neared 16K by shrugging off weak Asian cues in the backdrop of recession and inflation concerns. Overnight fall in crude prices also gave some respite, as rising imports of this commodity has been draining reserves and putting pressure on the currency," said Prashanth Tapse, Vice President (Research), Mehta Equities.

"Technically speaking, the make –or-break support for Nifty is seen only at 15521 and below the mark, expect a waterfall of selling which is likely to take the index towards 15181 mark. For tomorrow, any early morning altitude is likely to be capped at 16181 mark," added Tapse.

Inflation and interest rate hikes aimed at combating surging prices have weighed on the Nifty and the Sensex in the first half of 2022, with the indexes down nearly 8 per cent so far this year.

The Nifty FMCG index  was the best performing subindex on Wednesday, up 2.64 per cent, helped in part by tumbling palm oil prices and as Britannia Industries surged 4.8 per cent in its best session since July 2020.  

The Nifty Financial Services index climbed 1.6 per cent, with non-bank lender Bajaj Finance advancing 4.5 per cent after reporting strong loan additions in the June quarter.

Shares of domestic explorers Oil & Natural Gas Corp and Oil India slid 5.1 per cent and 8.6 per cent, respectively, following a slump in oil prices. Oil producers have been under pressure since last week following the government's move to impose a windfall tax.  

Spicejet shares swung in volatile trade after the aviation regulator issued a notice to the airline over safety lapses. The stock closed 2.3 per cent higher after falling up to 4.2 per cent earlier in the session.


(Reuters) 



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