Sensex, Nifty Close Higher Ahead Of Interim Budget; HDFC Bank, RIL Rise: Market Wrap

Indian benchmark equity indices ended higher a day before Budget 2024, led by gains in index heavyweights HDFC Bank Ltd. and Reliance Industries Ltd.

Investors also await the outcome of the U.S. Federal Reserve's meeting, due later on Wednesday.

The NSE Nifty 50 closed 186.00 points, or 0.86%, higher at 21,708.10, while the S&P BSE Sensex gained 544.86 points, or 0.77%, to end at 71,752.11.

The Nifty gained as much as 1.02%, and the Sensex gained 1%.

"The Nifty has formed a piercing-line pattern on the daily chart, following a dark cloud cover in the preceding trading session," said Rupak De, senior technical analyst, LKP Securities Ltd.

"This consecutive complete reversal pattern indicates highly volatile market sentiment. The trend may continue to be volatile on Thursday, especially as the interim budget is delivered," he said. "Support on the lower end (for Nifty 50) is situated at 21,500, while a decisive move above 21,750 might trigger a rally towards 22,100 and beyond."

Shares of HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., State Bank of India and Sun Pharmaceutical Industries Ltd. positively contributed to changes in the Nifty.

While, Bharat Petroleum Corp., Larsen & Toubro Ltd., Tata Consumer Products Ltd., Titan Co., and SBI Life Insurance Co. weighed on the index.

All sectoral indices rose. Nifty Pharma, Nifty PSU Bank, and Nifty Realty rose the most.

The broader markets outperformed the benchmark indices; the S&P BSE Midcap gained 1.57%, and the S&P BSE Smallcap rose 1.83%.

On BSE, 18 of the 20 sectors declined, while three advanced. The S&P BSE Healthcare rose the most among sectoral indices.

The market breadth was skewed in the favour of buyers. About 2,454 stocks rose, 1,380 declined, and 80 remained unchanged on the BSE.