Broader Market Rally Adds Rs. 12.04 Lakh Crore to Investors’ Wealth Despite Benchmark Indices Declining

New Delhi, October 28 (HS): The domestic stock market remained volatile on Wednesday despite a largely positive trend across most Asian markets. Heavy selling in information technology (IT) stocks and a surge in international crude oil prices weighed on sentiment, while value buying at lower levels provided support. Amid this tug-of-war between selling pressure and buying interest, the Sensex plunged by more than 995 points from its previous close at the intraday low, while the Nifty dropped by more than 280 points from its intraday high. However, both benchmark indices staged a substantial recovery from their lows, although they ultimately ended the session in the red.

The market opened on a weak note amid rising crude oil prices and intense pressure on IT stocks. Selling gathered momentum during the first hour of trading, triggering a sharp decline that pushed both benchmark indices to their intraday lows. Subsequently, buyers stepped in at lower levels, triggering broad-based buying and helping the market recover from its initial losses. Supported by the buying momentum, the Nifty briefly moved into positive territory, while the Sensex also recovered to approach the green zone.

However, selling pressure resurfaced during the final trading session, preventing both indices from sustaining their recovery. At the close, the Sensex was down 0.48 per cent and the Nifty declined 0.22 per cent. Despite the weakness in the benchmark indices, strong buying in the broader market, particularly mid-cap and small-cap stocks, helped investors add more than Rs. 12 lakh crore to their wealth during the session.

The BSE Sensex opened at 73,253.44, down 345.23 points, or 0.47 per cent. Selling intensified soon after the opening, dragging the index down by 995.10 points, or 1.35 per cent, to an intraday low of 72,603.57.

Buying subsequently gathered momentum across several stocks, helping the index recover significantly. The Sensex rebounded by 921.87 points from its intraday low to reach a high of 73,525.44. However, renewed selling pressure during the second half of the session eroded part of these gains. At the end of the day's trading, the index settled at 73,246.03, down 352.64 points, or 0.48 per cent.

Similarly, the NSE Nifty opened at 22,678, declining 71.75 points, or 0.32 per cent. Selling pressure immediately after the opening pushed the index down by 252.05 points to an intraday low of 22,497.70.

The market subsequently witnessed a strong recovery, supported by short-covering and value buying. The Nifty rebounded by 280.35 points from its intraday low to touch a high of 22,778.05, briefly gaining 28.30 points, or 0.12 per cent, during the session.

However, the recovery failed to hold in the final hour, as renewed selling pushed the index lower. The Nifty eventually closed at 22,698.85, down 50.90 points, or 0.22 per cent, after retreating 79.20 points from its intraday high.

Sectoral indices largely ended in positive territory, with the exception of IT and fast-moving consumer goods (FMCG). The Nifty IT index bore the brunt of the selling pressure, closing nearly 1.98 per cent lower. The Nifty FMCG index also ended the session down 0.56 per cent.

In contrast, the automobile and pharmaceutical sectors attracted the strongest buying interest. The Nifty Auto index gained 1.45 per cent, while the Nifty Pharma index advanced 1.04 per cent. The Nifty Bank index also closed 0.54 per cent higher. Healthcare and metal stocks witnessed mixed gains.

While selling in select heavyweight stocks kept the Sensex and Nifty under pressure, the broader market remained buoyant throughout the session. The Nifty Midcap 100 index advanced 0.43 per cent, while the Nifty Smallcap 100 index gained 0.90 per cent.

The strength in broader-market stocks and newly listed shares helped boost investors' wealth by more than Rs. 12 lakh crore, even as both benchmark indices ended lower.

The total market capitalisation of all companies listed on the BSE rose to Rs. 4,72,62,862.46 crore at the close of trading, compared with Rs. 4,60,58,303.18 crore on the previous trading day, October 27. This represented an increase of approximately Rs. 12,04,559.28 crore in investors' wealth during Wednesday's session.

A total of 4,555 stocks were actively traded on the BSE during the day. Of these, 2,245 closed higher, while 2,079 declined and 231 remained unchanged. Despite the volatility, 81 stocks touched their 52-week highs, while 222 fell to their 52-week lows. Ten stocks hit the upper circuit, whereas 40 ended at their lower circuit limits.

On the NSE, 3,257 stocks were actively traded. Of these, 1,741 advanced and 1,516 declined. Among the 30 Sensex constituents, nine stocks closed higher and 21 ended lower. In the Nifty 50, 28 stocks finished in positive territory, while 22 closed in the red.

Among the major gainers, Apollo Hospitals led the list with a rise of 4.43 per cent. Larsen & Toubro (L&T) gained 3.72 per cent, Trent advanced 3.31 per cent, SBI Life Insurance rose 2.06 per cent, and InterGlobe Aviation, the operator of IndiGo, climbed 2.03 per cent.

On the losing side, Infosys declined 3.43 per cent, followed by Reliance Industries, which fell 3.19 per cent. Oil and Natural Gas Corporation (ONGC) dropped 2.16 per cent, Tech Mahindra lost 1.92 per cent, and Bharti Airtel slipped 1.55 per cent.

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Hindusthan Samachar / Jun Sarkar