Stocks of paper, sugar, and fertilizer are heavily purchased
According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, Wednesday witnessed significant purchasing activity in specialized industries including paper, sugar, fertilizers, and alcohol.
With Midcap100/Smallcap100 up 0.1%/0.2%, the whole market finished in the black as well.
Sectorally, it was a mixed bag, with gains of 1% in FMCG, pharmaceuticals, and oil & gas. Real estate, PSU banks, and metals, on the other side, had some profit booking.
On Wednesday, paper stockpiles increased as a number of counters advanced. On the BSE, West Coast Paper increased by 13%, Tamil Nadu Newsprint increased by 7%, and JK Paper increased by 7%.
The price of sugar is firming up internationally owing to a shortage, while sugar supplies have also increased. Dwarikesh Sugar increased 6%, while Dhampur Sugar increased 6%.
Stocks of fertilizer companies including RCF and NFL saw gains of 6% and 5%, respectively.
Nifty closed at 19,611.1, up 0.18 percent or 36.2 points. In comparison to the recent average, NSE volumes were on the higher side. Following a gap, the small-cap index narrowly underperformed the Nifty, according to Deepak Jasani, Head of Retail Research at HDFC Securities.
After sluggish growth in China and Europe increased worries about wider economic momentum, equities worldwide dipped on Wednesday. European equities continued to decline as stagflation concerns spread across the euro area as a result of bad German data and high oil prices.
