The benchmark BSE Sensex and the NSE Nifty finished higher on Thursday as buying emerged across-the-board. The Sensex rallied 352.03 points or 1.08 per cent to end at 32,949.21 in its biggest single-day rise since November 1. The NSE Nifty gained 122.60 points or 1.22 per cent to finish at 10,166.70, logging its biggest single-day gain since May 25.

All the BSE sectoral indices led by Telecom (+4.8%), consumer durables (+2.49%), capital goods (+2.1%), power (+2.1%), Realty (+2.06%), Auto (+1.9%), metal (+1.8%) and oil and gas (+1.17%), were trading in the green.

The 30-share sensitive index had lost 205 points on Wednesday following the Reserve Bank’s decision to hold interest rates. Also, the central bank raised the inflation forecast for the remainder of the current fiscal to 4.3-4.7 per cent. The Sensex and the Nifty had fallen in six of the previous seven sessions.

Top five Sensex gainers were Bharti Airtel (+6.08%), Asian Paints (+3.29%), Maruti (+3.26%), Tata Steel (+2.97%), and Bajaj Auto (+2.78%). The laggards included Coal India (-0.64%), TCS (-0.52%), Cipla (-0.50%), Wipro (-0.34%) and Sun Pharma (-0.26%).

The top Nifty gainers included GAIL (+8.57%), Tech Mahindra (+5.13%) and UPL (+4.97%).

Brokers said buying by domestic institutional investors (DIIs) and a firm trend at other Asian bourses improved the market sentiment. DIIs had bought shares worth Rs 995.11 crore, while foreign funds sold shares to the tune of Rs 1,217.92 crore yesterday, the provisional exchange data showed.

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PSU Bank Nifty rose 1.25 per cent led by lenders such as Bank of India, Oriental Bank, Syndicate Bank and SBI on expectations that the government would soon reveal details of a recapitalisation plan. Reserve Bank of India Governor Urjit Patel said on Wednesday the government would “in the coming days” detail how it plans to inject an announced $32 billion into state-run lenders, which was announced in October. [ Recap plan aimed at reforming banks: Patel]

Meanwhile, an RBI order mandating banks to lower the merchant discount rate they charge on debit cards did not affect sentiment.

All eyes on Gujarat

However, broader gains were capped ahead of elections in Gujarat due this weekend, in a critical test for Prime Minister Modi. Polls indicate a victory for the ruling Bharatiya Janata Party (BJP), but with a greatly reduced majority. Results are due later this month.

“Today is largely seen as a corrective recovery in the market because it had gone into an oversold territory,” said Deven Choksey, promoter, KR Choksey.

“Markets will now look out for the Gujarat election outcome. There may be some recovery in the markets ahead of the earnings season and the government budget next month,” he added.

IRB Infrastructure Developers Ltd slid as much as 6.1 per cent after the company said the Central Bureau of Investigation has filed charges against it over alleged illegal purchases of government land. The stock ended down 2.05 per cent or Rs 4.30 at Rs 205.45.

In the global markets, Asian shares hovered near two-month lows on Thursday as softer oil and copper prices and uncertainty over US policy kept many investors on the sidelines, even as some high-tech bellwethers bounced back after a searing sell-off. MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed. It has slipped 4.7 percent from a 10-year peak hit on Nov. 23 as investors booked profits after robust gains this year. Hong Kong’s Hang Seng was up 0.10 per cent while Japan’s Nikkei gained 1.27 per cent in early trade today. Shanghai Composite Index, however, shed 0.52 per cent.

The US Dow Jones Industrial Average ended 0.16 per cent down yesterday.

(With inputs from Agencies)

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