Pharma, FMCG catapult Sensex out of Brexit fear

MUMBAI: The domestic equity market regained strength amidst high level of caution after European markets staged a strong recovery on Tuesday following fresh buying in beaten down stocks. Mirroring a broader trend in global stocks, the Sensex soared 121.59 points or 0.46 per cent to end the day at 26,524.55 while the Nifty ended the day at 8,127.85, gaining 33.15 points or 0.41 per cent.

The rally on the domestic bourses was led by defensive sectors such as pharma and FMCG while auto and IT sector continued to witness selling pressure. While the shares of Lupin and Cipla surged 4.39 per cent and 1.61 per cent respectively, the shares of Hindustan Unilever and ITC vaulted 3.25 per cent and 2.59 per cent. However, FPI remained net sellers of domestic equities worth Rs 190.43 crore.  “India is largely a domestic economy and domestic fundamentals are improving. The economy is recovering and the prospects of a good monsoon will only help. It’s not that Brexit will not have an impact on India, but the impact is so marginal relative to the local factors,” said Feroze Azeez, deputy CEO, AnandRathi Private Wealth Management.