nifty: Nifty up over 1%, FPIs turn net buyers

A sharp correction in crude oil prices, a strong June-quarter business update from and net buying by overseas funds after a long time triggered a relief rally in Indian stocks Wednesday, with the Sensex and the Nifty gaining more than a percent each amid weak Asian markets in the backdrop of mounting global concerns of an impending US recession.

The Sensex gained 1.16% to close at 53,750.97, its best closing in two weeks. The Nifty50 index rose 1.13%. The Nifty Midcap index surged 1.9%, while Nifty Smallcap rose 0.5%. Nifty FMCG gained the most at 2.64% followed by Nifty Auto and Nifty Consumer Durables, which were up 2.6% and 2.4%, respectively.

“Softening crude oil prices, FIIs repositioning to net buyers, and strong business data from lenders caused optimism in domestic equities,” said Vinod Nair, head of research at

, “Crude prices fell over recessionary fears. However, the fall has boosted the appetite for consumption, chemicals, logistics, and OMCs as it will reduce the cost burden of these sectors.”

The rupee Wednesday gained 0.09% to close at 79.30 against the dollar while benchmark US crude ended at $99.50 a barrel, its first close below $100 since early May. According to technical analysts, the Nifty is headed toward 16,200 levels.

“The short-term trend of Nifty has turned positive, and the overall chart pattern hints at a possibility of a sharp upside breakout of the hurdle,” said Nagaraj Shetti, analyst,

Securities. “The next upside levels to be watched are around 16,200-16,300 in the short term with immediate support at 15,900 levels.”

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