Markets make tepid gains; RIL rebounds over 3 pc

Markets ended modestly higher on Wednesday, propped up by value buying in index heavyweights RIL, ICICI Bank and HDFC Bank, even as risk sentiment remained subdued amid rising coronavirus cases in the country.

Despite rebounding over 386 points during the day, the 30-share BSE Sensex pared most gains to settle 62.45 points or 0.18 per cent higher at 35,697.40.

On similar lines, the broader NSE Nifty closed 6.95 points or 0.07 per cent up at 10,458.40.

Investors made a cautious return to some recently-mauled counters in the energy, banking and consumption sectors, traders said.

Top gainers in the Sensex pack included Hero MotoCorp (4.08 per cent), Reliance Industries (3.60 per cent), ICICI Bank (1.80 per cent) and HUL (1.51 per cent).

On the other hand, Tata Steel, IndusInd Bank, ONGC, SBI and Infosys tumbled up to 7.11 per cent.

According to analysts, equity benchmarks gave up most gains as nervousness heightened among investors amid rapidly increasing coronavirus cases in the country and mixed cues from global markets.

The number of confirmed cases of coronavirus in India rose to 60 on Wednesday, with two fresh cases in Delhi and Rajasthan.

The coronavirus epidemic has wreaked havoc across the world, killing more than 4,000 people and leaving close to 120,000 infected.

READ | Markets Plunge, Northern Italy Locked Down As Virus Spreads

"Market seems to be pricing in a large dose of liquidity infusion by global central banks. Overnight US market rose on the prospect of fiscal stimulus measures by the US Federal Reserve to curb slower economic growth stemming from the coronavirus outbreak and similar measures are also expected from European Central Bank.

"Bank of England today cut rates in an emergency move to combat coronavirus impact by 50 basis points to 0.25 per cent," said Paras Bothra, President of Equity Research, Ashika Stock Broking.

BSE energy, telecom, capital goods, finance and banking indices gained up to 2.11 per cent, while realty, oil and gas, metal, IT, consumer durables and auto settled in the red.

The broader BSE midcap and smallcap indices underperformed the benchmarks, ending up to 0.89 per cent lower.

Global markets were mixed as investors assessed the impact of the coronavirus outbreak amid expectations of coordinated measures by various central banks to boost growth.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with significant losses, while those in Europe rallied up to 2 per cent in early trade.

Brent crude oil futures slipped 2.02 per cent to USD 36.47 per barrel, after Saudi Arabia hiked production by one million barrels a day.

On the currency front, the Indian rupee appreciated 46 paise to 73.70 per US dollar (intra-day).

READ | Asian Markets Lose Early Puff As Virus Uncertainty Casts A Pall

READ | Global Markets Rebound, Saudi Aramco To Boost Oil Production