Markets start on positive note; SBI, ONGC lead gains

Equity benchmarks Sensex and Nifty started on a positive note on Wednesday tracking gains in index majors HDFC twins and SBI amid strong foreign fund inflow.

The 30-share BSE index was trading 80.72 points or 0.15 per cent higher at 52,356.29 in initial deals. Similarly, the broader NSE Nifty advanced 26.45 points or 0.17 per cent to 15,766.55.

ONGC was the top gainer in the Sensex pack, rising around 2 per cent, followed by SBI, Sun Pharma, HDFC, Asian Paints, Dr Reddy’s and Bajaj Finserv.

On the other hand, UltraTech Cement, Maruti, Bajaj Auto and ICICI Bank were among the laggards.

In the previous session, Sensex slipped 52.94 points or 0.10 per cent to 52,275.57, and Nifty declined 11.55 points or 0.07 per cent to end at 15,740.10.

Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth 1,422.71 crore on Tuesday, as per provisional exchange data.

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"Domestic equities look to be muted as of now. An improved prospect of economic recovery led by sharp drop in daily caseload, ramping up vaccination process and phased withdrawal of restrictions imposed by states has already led markets to witness fresh highs," said Binod Modi Head-Strategy at Reliance Securities.

Going forward, with the easing of lockdown restrictions at state level, the government's higher allocation towards capital expenditures for FY22E should be helpful in driving economic growth in coming quarters, he noted.

Elsewhere in Asia, bourses in Seoul, Tokyo and Hong Kong were in the red in mid-session deals, while Shanghai was trading with gains.

Equities on Wall Street ended on a positive note in overnight trade.

International oil benchmark Brent crude was trading 0.65 per cent higher at $72.69 per barrel.