Bengaluru: Financials led a rally in Indian shares on Wednesday, mirroring the rise in their Asian peers as easing worries over the global banking turmoil whet risk appetite, while Adani group stocks rebounded.
The Nifty 50 index was up 0.41% at 17,019.95 as of 11:03 a.m. IST. The S&P BSE Sensex rose 0.31% to 57,799.75.
Twelve of the 13 major sectoral indexes advanced. The heavyweight financials index rising 0.8%, with Bajaj Finance, Bajaj Finserv, HDFC and HDFC Bank were among the top gainers.
“The recent correction in the market has made valuations more palatable,” brokerage Jefferies said in a note.
The Nifty 50 has fallen more than 2% since the collapse of Silicon Valley Bank in mid-March, while the financials index has lost 0.58%.
In that period, the broader market has not been able to stitch a winning run of more than two consecutive days and analysts expect the choppiness to continue in the near term due to a liquidity crunch and lack of immediate triggers.
“Most of the large HNIs (high net worth individuals) and PMSs (portfolio management services) are stuck at higher levels. The overhang will continue for some time as there is no fresh buying trigger,” said Avinash Gorakshakar, head of research at Profitmart Securities.
Nearer term, analysts expect the monthly expiry of the March derivatives series to lead to elevated volatility.
Among stocks, most Adani group companies gained after a drop on Tuesday following a report that said the conglomerate was seeking to renegotiate debt, which the group refuted.
Adani Enterprises and Adani Ports rose about 5% each and were among the top Nifty 50 gainers.
Joining them was Mahindra and Mahindra, which jumped nearly 2% after ICICI Securities upgraded the stock to “buy”.
Bajaj Auto jumped over 1% after JP Morgan reiterated its “overweight” rating on the stock.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann Thoppil and Savio D’Souza)
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