The Indian equity benchmark indices closed higher, ending a two-day decline, as bank stocks led gains.
The NSE Nifty 50 ended 146.90 points, or 0.64% up at 22,976.05, and the 30-stock BSE Sensex ended 535.23 points, or 0.71% higher at 75,901.41.
The NSE Nifty Bank also closed higher at 48,866.85. The index ended 1.67% up at 802.20.
"Selling continued in the broader markets, but the Frontline Index went up, led by the banking and auto sectors. Mid and smallcap stocks recovered most of their losses during the day, however, couldn't sustain at higher levels. After the big swings, Nifty 50 closed at 22,957.25, with gains of 128.10 points," said Aditya Gaggar, director of Progressive Shares.
Realty was the best-performing sector, followed by PSU Banks, while pharma and energy lagged. The broader markets extended their underperformance as mid and smallcaps corrected by 0.51% and 1.81% respectively, said Gaggar.
"The index shows a potential trend reversal with a long-legged Doji candlestick pattern, and there could be a bullish divergence in the RSI. A close above 23,100 would confirm this. Immediate resistance is at 23,100 and support at 22,800," he added.
Shares of HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Bajaj Finance Ltd. and Bharti Airtel Ltd. contributed positively to changes in the Nifty 50.
While those of Sun Pharmaceutical Industries Ltd., ITC Ltd., Larsen & Toubro Ltd., Tata Consultancy Services Ltd. and HCLTech weighed the index.
Five out of 12 sectors ended in green, with Nifty Realty, Finance, PSU Bank, Bank and Auto gaining the most.
Nifty Pharma, Energy, Media, Oil & Gas, IT, Metal and FMCG declined the most.
Broader markets underperformed benchmark indices. The BSE Midcap and Smallcap indices ended 0.63% and 1.73% down, respectively.
On BSE, 16 sectors declined, and five advanced out of 21. The BSE Healthcare declined the most, and the BSE Bankex rose the most.
Market breadth was skewed in the favour of sellers. Around 2,695 stocks declined, 1,265 stocks advanced, and 117 remained unchanged on BSE.
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