FIRST TRADE: Sensex rises 200 pts, Nifty above 21,850 amid broad-based buying; Eicher Motors zooms 5%

Stock market today: Domestic equity indices Sensex and Nifty inched higher on Wednesday (March 20) led by gains in energy and auto shares in a rebound from five-week lows registered in the previous session. However, selling pressure in metal counters limited the upside in the main gauges. Dalal Street took largely positive cues from global markets ahead of a key rate decision by the Federal Reserve later in the day.

Both indices were up 0.2 per cent at the last count, with the 30-scrip barometer up 179.2 points at 72,191.2 and the Nifty up 51.9 points at 21,869.4. 

"There was a significant trend in the market decline yesterday. Nifty corrected by more than one per cent even when institutions were big buyers. DII buying was Rs 7449 crores and FII buying was Rs 1421 crores. TCS bulk sales by Tata Sons cloud this institutional activity. But the important point is that there has been profit booking by HNIs and retail investors which pulled the market down. Sebi’s warning about elevated valuations in the broader market has played a role in this profit booking," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. 

Dr. Vijayakumar added the Fed’s rate decision, and more importantly, the Fed commentary tonight will decide the trend in the US market. 'Buy on dips' is likely to emerge today in large caps. Bank Nifty has the potential to lead the buying supported by other high-quality large-caps like Bharti, RIL, and leading auto stocks.

The Nifty Bank was up 0.2 per cent at 46,471.9.

Broader market indices Nifty Midcap 100 and Smallcap 100 were up about 0.1 per cent each.

BUZZING STOCKS

Eicher Motors shares were up over 5 per cent after UBS double upgraded to 'buy' from 'neutral' and raised target to Rs 5,000 from Rs 4,300 apiece. 

LT Foods shares were up over 7 per cent after Abakkus Asset Manager LLP bought 33.93 lakh (0.97 per cent) shares at Rs 162.04 per share.

Zomato shares were up over 1 per cent after the food delivery platform launched only vegetarian delivery service.

GPT Healthcare shares were up over 10 per cent after company announced dividend and Q3 results. 

Conversely, Shakti Pumps shares were down over 2 per cent a day after the company's QIP window opened.

GLOBAL MARKETS 

Shares were hesitant on Wednesday on concerns the Federal Reserve could signal a slower path of rate cuts this year, while the yen plumbed a fresh four-month low on expectations that policy in Japan will remain accommodative for a while longer.

Tokyo's Nikkei is closed for a holiday in Japan, but the yen's weakness lifted Nikkei futures by 0.6 per cent, a day after the Bank of Japan ended years of negative interest rates in a well-telegraphed move.

(With inputs from agencies.)

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