India News | Markets Maintain Momentum for 3rd Day; RIL Gains After Netmeds Deal

Mumbai, Aug 19 (PTI) Market benchmarks ticked higher for the third straight session on Wednesday, propped up by Reliance Industries, HDFC Bank and ICICI Bank amid a bullish trend in global equities.

The BSE Sensex touched a high of 38,788.51 during the day but succumbed to profit-booking at the fag-end of the session. It finally closed at 38,614.79, up 86.47 points or 0.22 per cent.

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On similar lines, the NSE Nifty rose 23.05 points or 0.20 per cent to 11,408.40.

Market behemoth Reliance Industries climbed 0.68 per cent after announcing acquisition of 60 per cent stake in e-pharmacy Netmeds for Rs 620 crore.

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Tech Mahindra was the top gainer in the Sensex pack, rising 1.91 per cent, followed by Bharti Airtel, Maruti, ICICI Bank, HDFC Bank, SBI, RIL and , Asian Paints.

On the other hand, Bajaj Auto, ONGC, Nestle India, HUL and Kotak Bank were among the laggards, slipping up to 1.42 per cent.

According to traders, domestic bourses followed positive cues from global markets after US equities hit record highs in overnight session.

"Ever present fears regarding the COVID-19 impact on economic recovery brought about volatility in the global markets, despite US markets surging to record highs. Indian indices also exhibited this volatility before closing the day with a positive bias. Banking index again led the gains.

"The gains in the Indian market, as in the global markets, have been driven by ample liquidity and the expectation of normalisation of business supported by government measures, in a post COVID-19 scenario. However, investors must continue to remain stock specific and use the accumulation strategy for the time being," said Vinod Nair, Head of Research at Geojit Financial Services.

BSE telecom, realty, industrials, basic materials, utilities and finance indices jumped up to 1.49 per cent, while IT, FMCG, healthcare and teck indices ended in the red.

Broader BSE mid-cap and small-cap indices rallied as much as 1.16 per cent.

Persistent foreign fund inflows too buoyed investor sentiment, traders said.

Foreign institutional investors bought equities worth a net Rs 1,134.57 crore on Tuesday, provisional exchange data showed.

Global markets followed cues from Wall Street despite rising US-China tensions and concerns around stretched valuations.

Bourses in Tokyo and Seoul ended on a positive note, while Shanghai and Hong Kong were in the red.

Stock exchanges in Europe were trading with steady gains in early deals.

Global oil benchmark Brent crude was trading 0.66 per cent lower at USD 45.16 per barrel.

In the forex market, the rupee settled 6 paise lower at 74.82 against the US dollar.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)