Mkts end higher in volatile trade led by banking, financial stocks

Benchmark indices Sensex and Nifty recovered on Wednesday following buying in bank stocks and softer-than-expected US inflation data, reinforcing expectations that the Federal Reserve may adopt a less aggressive monetary policy stance in the coming months.

The 30-share BSE Sensex climbed 130.49 points, or 0.17%, to settle at 77,185.43. The 50-share NSE Nifty rose 26.45 points, or 0.11%, to end at 24,078.50.  Escalating hostilities between the US and Iran, however, kept investor sentiment subdued in the second half of trade, triggering profit-taking. 

"Domestic equities exhibited resilience, with broader markets outperforming large caps amid positive Asian cues," said Vinod Nair, Head of Research, Geojit Investments Ltd. 

"The market drew support from softer-than-expected US inflation data, which eased concerns over the Federal Reserve's interest rate trajectory and improved global risk sentiment. However, renewed geopolitical tensions in the Middle East and caution ahead of key quarterly earnings limited the upside and kept investors from taking aggressive positions," said Ajit Mishra, SVP, Research, Religare Broking Ltd.         

-PTI