Stock Market: Relief on streets as financial fear fades

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By S Jha

New Delhi, March 29: Good news for the streets globally was that no new bank collapsed. The global equity markets rallied on Wednesday, backed by fall in the treasury yields, while short covering brought tidal wave on the Dalal Street.

Dow Jones was higher by over 200 points in the afternoon trade. Nasdaq strongly gained after days of losses on the back of semiconductor and tech giants rallying. The famed FAANG stocks were trending sharply higher on Wednesday.

Nifty climbed by as many as 160 points during the closing hours of the session after hectic short-covering pushed the index higher in a quick span of time. Once more the 3 PM action was visible, as the power of short-covering sent both Nifty and Bank Nifty soaring.

Bank Nifty held steady on Wednesday, which was also the weekly index expiry day, while also being the monthly expiry for the stock contracts. Bank Nifty had showed signs of strength on Tuesday, and the index carried the momentum with HDFC Bank leading the way for the banking peers.

A positive commentary by the management of the Adani Group brought good tidings for Adani Enterprises and Adani Port and SEZ, with both the scrips rising sharply. But the midcaps and smallcaps from the groups remained under pressure on Wednesday.

The foreign institutional investors once more heavily bought in the cash market. The FIIs accounted for a net buy of Rs 1245 crores in the cash market. The domestic institutional investors too chipped in with a net buy of Rs 823 crores in the cash market. The institutional action in the equity market may augur well for the bourses going in the April series, with no substantial changes in the global financial ecosystem.

The Asian equity markets closed higher. Thus, there was a secular rally globally. There are reports that the US government would step in with additional measures to avert collapse of the banks.

The realty sector gained the most on Wednesday. Lodha group, Macrotech Developers, spiked by 10 per cent. The realty sector has been badly hit in the recent months, with several of the scrips languishing at their lows. The auto sector was also firm on Wednesday. The two-wheeler companies gained the most on the bourses. Following demerger of the business, Mirza International traded with a new price, while investors would get equities of Red Tape.