Market snaps 3-day losing streak, Sensex gain 875 pts, Nifty 24,298

The Indian benchmark indices snapped three-day losing streak on Wednesday and ended on a higher note, led by buying across various sectors ahead of the RBI's policy decision tomorrow. At close, the Sensex was up 874.94 points or 1.11 percent at 79,468.01, and the Nifty was up 304.95 points or 1.27 percent at 24,297.50.Investor confidence was bolstered by a positive trading day in Japanese and U.S. markets, following comments from Federal Reserve officials that eased concerns about a looming U.S. recession.
Coal India, Adani Ports, Power Grid Corp, Cipla and Wipro were the top gainers on the Nifty, while losers included IndusInd Bank, Eicher Motors, Britannia, Tech Mahindra and Titan Company. On the sectoral front,all the sectoral indices ended in the green with metal, healthcare, media, power, telecom, oil & gas, capital goods up 2-3 percent.BSE Midcap index and Smallcap indices closed 2 percent higher each.
Rupee Close:
On 7th Aug'24,the Indian rupee consolidated in a narrow range and settled lower by 4 paise at 83.96  against the US dollar on Wednesday, weighed down by a recovery in the US dollar and geopolitical tensions in West Asia.
Forex traders reportedly stated that the Indian rupee depreciated on Wednesday on a strong US dollar and positive crude oil prices. However, strength in the domestic markets cushioned the downside.
Trading Guide:
Market experts have recommended these four shares to buy for today - Hindustan Unilever, Natco Pharma, Godrej Properties, Reliance Industries and Havells India.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, reportedly quoted as saying,"After the twin jolts from US recession fears and the unwinding of the Yen carry trade, stock markets globally are slowly limping back to stability. The message from the Bank of Japan that “rates will not be hiked when markets are unstable” will help in stabilising the Yen and prevent further massive unwinding of the Yen carry trade.Even though FIIs were big sellers in India in the cash market during the last three days, their selling is being matched by DII buying. This countervailing investment by DIIs can impart resilience to the market. It appears that the exuberance of retail investors has taken a knock after the crash in the broader market. Market valuations continue to remain elevated. There is value in financials. At this juncture in the market, investors should prioritise largecap investment over the mid and small caps."
Meanwhile,the Indian market also witnessed broad-based buying across sectors, with the Realty sector seeing a relief rally due to the reinstatement of indexation benefits.The carry trade issue appears to have been eased for now and the focus is on the ongoing RBI policy, which is likely to hold the rate and positive economic outlook.

(Writer is a Finance Research Analyst, based in Gandhinagar, Gujarat)