Business Standard ·
Economy, business and finance
FMCG, PSU banks lift markets as IT drags; Tata stocks caught in crossfire
Indian equities recover as FMCG and PSU bank stocks gain, while IT shares and Tata group stocks face selling pressure ahead of the Tata Sons board meeting
Indian equities snapped their losing streak to close higher on Wednesday, driven by strong buying interest in fast-moving consumer goods (FMCG) and public-sector banking stocks, even as Tata group stocks remained volatile ahead of the Tata Sons board meeting to discuss succession issues.
The clear loser in the Tata pack was Tata Consultancy Services (TCS), which fell 2.6 per cent. Analysts said that while Tata stocks remained volatile ahead of the meeting, the weakness in TCS was also linked to broader industry conditions and global factors weighing on the information technology (IT) sector.
TCS, the largest company in the Tata group, has a market capitalisation of around ₹8 trillion. Of the 26 listed Tata group companies, seven closed higher, while 19 ended in the red.
The Sensex rose 0.45 per cent to close at 74,336.5, while the broader Nifty 50 gained 0.43 per cent to settle at 23,217.6.
“The index has formed a high wave candle following a strong bearish candle, indicating absorption of selling pressure and rejection of lower levels, with the formation suggesting consolidation with stock-specific action. Despite the recent stabilisation, the index has not yet formed a higher high–higher low structure, keeping the broader sentiment cautious,” said Pabitro Mukherjee, deputy vice-president of research at Bajaj Broking.