The NSE Nifty rose 134.75 points to close at 8,069.65 while the BSE Sensex surged 485 points to 26,366.68 on Thursday, extending the two-day rally due to short covering of derivative contracts that expired in May.
A string of positive developments, such as strong US data, oil prices touching $50 again, prospects of an above-normal monsoon and better-than-expected corporate performances in the quarter ended March, added to the positive sentiment.
Infrastructure stocks, led by Larsen and Toubro, and banking stocks, led by public sector banks, were major contributors to the rally on Thursday after the Cabinet approved the National Capital Goods policy and global credit rating agency Moody’s Investors Service said in a report that the new bankruptcy code will address several key inefficiencies in the current legal framework and is credit positive for Indian banks.
L&T, SBI and BHEL were the top three gainers on the NSE. Except pharma, all other sectoral indices on the NSE traded with gains.
Investors have also cheered the Modi government’s two-year performance. “The government has been able to create a positive environment in the country and on the international front,” opined Motilal Oswal, CMD, Motilal Oswal Financial Services Ltd.