Mumbai, June 8 Benchmark indices ended their four-day losing streak by closing higher on Thursday.
The market opened on a weak note amid weak global cues. The indices managed to erase their early losses and extended gains during closing hours, witnessing buying across multiple counters, led by oil & gas and pharma stocks.
The BSE Sensex closed at 55,320.28, up 427.79 points or 0.78 per cent. It recorded an intraday high of 55,366.84 and a low of 54,507.41. The Nifty 50 closed at 16,478.10, up 121.85 points or 0.74 per cent, near the day’s high of 16,492.80. It recorded an intraday low of 16,243.85.
Breadth turns positive
The market breadth turned positive with 1,770 stocks advancing on the BSE, as against 1,540 that declined, while 128 remained unchanged. Further, 19 stocks hit the upper circuit as compared to the one stock that was locked in the lower circuit. Besides, 73 stocks touched a 52-week high and 72 touched a 52-week low.
Vinod Nair, Head of Research at Geojit Financial Services said, “The market continued to be dominated by a volatile global market, with investors weighing the impact of upcoming central bank meetings globally. However, the domestic market reversed its losses during closing hours due to positive movements in US futures. FIIs are cautious ahead of the Fed policy, even though the market may have factored-in an interest rate hike of 50bps due to risk of hawkish measures.”
Head of Retail Research, HDFC Securities, Deepak Jasani said, “Nifty snapped a four-day losing streak despite unencouraging global cues. The Nifty opened with a gap down and made an intra-day low in the first minutes of trade. Later, it kept rising gradually through the day, and closed near an intra day high. The Nifty was the best performer in the Asian region.”
“Asian stocks fell, US bond yields edged up and a surging dollar hit a two-decade high against the yen on Thursday even as crude oil prices hovered above $120 a barrel, adding to price pressures. European markets traded lower as investors worried about the impact of rate rises ahead of a European Central Bank meeting later in the day. Unless the ECB sounds very hawkish in its meet later today, the upmove in the Nifty could continue over the next few sessions,” added Jasani.
Dr Reddy, BPCL, Reliance, Eicher Motor and Bajaj Auto were the top gainers on the Nifty 50, while Tata Steel, Shree Cement, Grasim, Tata Motors and NTPC were the top losers.
Metals lose shine
On the sectoral front, all indices, except Nifty Metal and Nifty PSU Bank, which closed in the red. Oil & gas, pharma, healthcare and IT recorded higher gains.
Nifty Metal closed over 1 per cent lower, while Nifty PSU Bank was down 0.29 per cent.
Meanwhile, Nifty Oil & Gas closed nearly 2 per cent higher. The Nifty Pharma and Nifty Healthcare Index were each up over 1 per cent at closing. Nifty IT was up 0.98 per cent.
Broader market rebounds
The broader market rebounded from early losses, with the broader indices closing in the green.
Nifty Midcap 50 was up 0.46 per cent at closing, while Nifty Smallcap 50 was up 0.17 per cent. The S&P BSE Midcap was up 0.46 per cent, while the S&P BSE Smallcap was up 0.26 per cent.
The volatility index softened 3.51 per cent to 19.14.