A morning walk down Dalal Street | PSU banks in focus

A strong day for D-Street and well some would call this a Santa Claus rally as Nifty bounced back 634 points from a low of 10,333 recorded on 11 December.

Talking about what happened in today’s session – the market registered a seventh straight session of healthy gains, largely led by appreciating rupee against the USD, declining crude oil prices, sharp fall in bond yield and continuous infusion of liquidity by RBI via open market operation. 

Remember, D-Street will react to the outcome of the FOMC meeting when the market will open for trading on Thursday.

Let’s look at the final tally -- the Nifty index ended with healthy gains of 0.5 percent at 10,967 levels while the S&P BSE Sensex rallied 137 points to close at 36,484. 

Barring IT, which witnessed selling pressure, all the other sectoral indices witnessed healthy buying with Auto, Realty, Power, FMCG and Oil & Gas being the top gainers in range of 1-3 percent.

The rupee pared early gains but managed to end 5 paise higher at 70.39 against the US dollar Wednesday on increased selling of the greenback by exporters amid benign crude oil prices and smart gains in domestic equities. 

On the institutional front, FPI were net buyers of Indian share worth Rs 1209 crore while DII were net sellers to the tune of Rs 481 crore, according to provisional data.