Market Today: Indian markets recouped early losses on Wednesday as state-run majors like SBI, BPCL, ONGC and Coal India surged 3-7 per cent in late deals, aiding the rebound.
The BSE Sensex index closed 278 points higher at 71,833 after recovering over 1,000 points from its intra-day low. The Nifty50 ended 97 points up at 21,840 from touching an intra-day low of 21,530.
With this, Indian benchmarks defied a global market selloff on Wednesday, which came as US reported a hotter-than-expected rise in January retail inflation.
Back home, however, the WPI index eased to 0.27 per cent in January, a slower increase than expected, aiding the turnaround for equities.
Tata Steel, Axis Bank, Maruti, NTPC, Power Grid, ITC, Nestle, IndusInd Bank, Tata Motors, Reliance and M&M were other frontline gainers, which closed 1-2 per cent higher.
Tech M, Infosys, Sun Pharma, Cipla, Dr Reddy’s, meanwhile, were the top drags.
The BSE MidCap and SmallCap indices also recouped day’s losses and ended up to 1.3 per cent higher.
Among sectors, Nifty IT and Pharma indices lost 1 per cent each. Nifty PSU Bank and Oil & Gas indices logged most gains, up over 3 per cent each.
Paytm down 9% after brokerages cut Paytm’s target price by 20-60% after RBI diktat
It has been two weeks since the Reserve Bank of India imposed restrictions on Paytm Payments Bank (PPB). Following the diktat, foreign brokerages like CLSA, Morgan Stanley, Jefferies, Bernstein have cut their target prices for One 97 Communications (Paytm) by 20-60 percent, with Macquarie the biggest bear on the Street.
While restrictions on PPB do not directly impact the lending business, brokerages seem to be divided on the matter. Some brokerages see a huge customer exodus impacting loan distribution, while some say the impact will only be on the wallets business. PPB houses all of Paytm’s 33 crore wallets
Global Cues
Tokyo stocks opened lower on Wednesday following falls on Wall Street after sticky US inflation data dampened hopes for quick interest rate cuts by the Federal Reserve.
Wall Street’s main indexes tumbled on Tuesday after a higher-than-expected consumer inflation reading pushed back market expectations of imminent interest rate cuts, driving US Treasury yields higher.
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