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Benchmark indices closed nearly one per cent higher at the end of a volatile session on Thursday. The stock markets started off on a positive note, tracking cues from its Asian peers.
The Indices, however, remained volatile through the day, oscillating between gains and losses and closed in the green, led by auto stocks.
The BSE Sensex closed at 52,265.72, up 443.19 points or 0.86 per cent. It recorded an intraday high of 52,516.79 and a low of 51,632.85. The Nifty 50 closed at 15,556.65, up 143.35 points or 0.93 per cent. It recorded an intraday high of 15,628.45 and a low of 15,367.50.
Breadth turns positive
The market breadth turned positive with 2,096 stocks advancing on the BSE against 1,208 that declined while 130 remained unchanged. Furthermore, 14 stocks hit the upper circuit as compared to only three stocks that were locked in lower circuit. Besides, 58 stocks touched their 52-week high, while 120 touched 52-week low.
Narendra Solanki, Head-Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said, “Indian markets opened on positive note following Asian market peers which were trading mostly in green led by China...markets trimmed some of their gains in the afternoon session as European markets struggled to shrug off recession fears but managed to close in green.”
According to Solanki, buying in frontline stocks kept the gains in the markets in check.
“Traders were encouraged as Prime Minister Modi said the government expects the Indian economy to grow by 7.5 per cent this year. Additional support came with RBI data showing that the country’s foreign exchange reserves in nominal terms, including valuation effects, rose by $30.3 billion in 2021-22 against $99.2 billion expansion in 2020-21,” Solanki added.
S Ranganathan, Head of Research at LKP securities said, “Advancement of the southwest monsoon beyond the Eastern parts of the country coupled with a cool off in oil buoyed auto stocks today as they led the charge on the benchmark indices with good support from the IT stocks. Engineering exports have looked up smartly in the first two months of the current fiscal bringing some cheer to the bulls in an environment which is devoid of positive news flows.”
Maruti, Hero Motocorp, Eicher Motor, M&M and Bajaj Auto were the top gainers on the Nifty 50, while Reliance Industries, Powergrid, Coal India, NTPC and Grasim were the top losers.
Oil & Gas drags
On the sectoral front, all indices except the Nifty Oil & Gas closed in green with auto registering highest gains.
Nifty Auto closed over four per cent higher. Nifty IT was up nearly two per cent. Nifty Realty closed 1.66 per cent higher. Nifty Pharma and Nifty Healthcare Index were up 1.58 per cent each at closing.
Meanwhile, Nifty Oil & Gas was down 0.43 per cent.
Broader indices
Broader indices outperfomed the benchmarks.
Nifty Midcap 50 was up 1.31 per cent, while Nifty Smallcap 50 was up 1.63 per cent. The S&P BSE Midcap was up 1.40 per cent while the S&P BSE Smallcap was up 1.18 per cent.
The volatility index softened 1.97 per cent to 20.88.
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