Stock market recap: Indian equities closed higher on Wednesday, with the Sensex gaining 772.75 points to 81,879.40 and the Nifty 50 rising 210.40 points to 25,255.05, as markets reopened after the Diwali-Balipratipada holiday.
Sustained foreign institutional buying was a key driver, with inflows totalling about ₹53,170 crore over six trading sessions in November. Softer crude oil prices eased concerns over inflation, input costs and pressure on the rupee, which strengthened to 93.69 against the US dollar. Better-than-expected September-quarter earnings, with Nifty 50 companies posting nearly 24% profit growth, further lifted sentiment.
PSU banks, auto, private bank and FMCG stocks led the gains, with M&M, IndiGo and Trent among the top performers. However, higher-than-expected US inflation data and hawkish remarks from the Federal Reserve pushed global bond yields higher, fuelling expectations of a rate hike in December.
Selling in IT, pharma and realty stocks added to the pressure, prompting the benchmarks to surrender much of their early gains and limiting the day's advance.
Two stock recommendations by MarketSmith India:
Buy: Karnataka Bank Ltd (current price: ₹350)
- Why it’s recommended: Strong…