Benchmark indices jumped over one per cent on Wednesday on the back of FPIs’ changing sentiment towards the market amid receding inflation worries following a sharp drop in the prices of commodities, including crude oil.

The 30-share BSE Sensex climbed 616.62 points or 1.16 per cent to settle at 53,750.97.

Similarly, the NSE Nifty advanced 178.95 points or 1.13 per cent to 15,989.80. The indices were in the positive zone throughout the day and climbed sharply in the closing hours, tracking positive global cues.

According to analysts, FPIs have turned buyers to the tune of ₹2,150.97 crore on Tuesday for the first time since May 30. According to exchange data, they offloaded just ₹330-crore worth shares on Wednesday. The heavy buying by domestic institutions (₹1,464 crore) lifted the stocks across-the-board in late hour.

Vinod Nair, Head of Research at Geojit Financial Services, said: "Softening crude oil prices, FIIs repositioning to net buyers and strong business data from lenders tempered optimism in domestic equities. 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."

Index gainers

Among Sensex scrips, Bajaj Finserv, Bajaj Finance, Hindustan Unilever, Asian Paints, Titan, Maruti Suzuki India, Kotak Mahindra Bank and Nestle were the major gainers. Power Grid, NTPC, Reliance Industries, Larsen & Toubro and Tata Steel were the laggards.

Among the sectors, the BSE Auto was the best performer by gaining 2.64 per cent, followed by BSE Consumer Discretionary, BSE Consumer Durables, BSE Realty and BSE FMCG that gained nearly 2.5 per cent each.

Broader indices such as BSE Midcap and BSE SmallCap, too, surged 1.76 per cent and 0.94 per cent respectively.

"The buyers prioritised the banking, auto, consumer discretionary, and FMCG counters. The government's notification of some procedural adjustments to the GST laws, especially those relating to threshold, for filing annual returns for the 2021–22 fiscal, which will lessen the compliance burden on small companies, received support from traders," said Mohit Nigam, Head-PMS, Hem Securities.

The Centre’s move to impose a windfall tax last week continued to hurt oil & gas companies. Domestic explorers such as Oil & Natural Gas Corp and Oil India slid 5.1 per cent and 8.6 per cent, respectively, while Reliance edged down 0.87 per cent.

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