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Market rebounded sharply on Thursday after ending on a flat note for two consecutive days, with Nifty 50 scaling a new peak.
Markets rallied further on Thursday ahead of the RBI policy announcement on Friday. Heavyweights such as Reliance and HDFC tracked gains during the morning session.
The Nifty 50 index breached the 15,700-mark to record a new all time-high of 15,705.10. It also recorded a new closing high of 15,690.35, up 114.15 points or 0.73 per cent. It hit an intra-day low of 15,611.00.
The BSE Sensex closed at 52,232.43, up 382.95 points or 0.74 per cent. It hit an intraday high of 52,273.23 and a low of 51,942.20. The Sensex is just a shade away from its all-time high of 52,516.76.
The breadth of the market remained positive with 2,188 stocks advancing, 986 declining and 137 remaining unchanged on the BSE. As many as 533 securities hit the upper circuit and 160 the lower circuit; 400 hit their 52-week high while 32 touched a 52-week low.
Volatility index below 16
Notably, the volatility index softened 8.51 per cent to drop below 16 to 15.75, signaling the confidence of bulls.
Binod Modi, Head Strategy at Reliance Securities said, “Domestic equities remained upbeat with benchmark Nifty recording fresh high today. Rebound in heavyweight financial services supported market once again.”
Titan, ONGC, Eicher Motors, L&T and Axis Bank were the top gainers on the Nifty 50 while IndusInd Bank, Wipro, Dr Reddy, Tata Steel and Bajaj Auto were the top laggards.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said, “Indian equity benchmarks traded in green terrain in morning deals, tracking similar cues from their Asian peers. Sentiments remained positive with the expanded Emergency Credit Line Guarantee Scheme (ECLGS) likely to help businesses like hotels, civil aviation and tour operators, which are the hardest hit by the second wave of Covid-19. The markets extended their gains in late afternoon session.”
Pharma, auto remain under pressure
On the sectoral front, all indices except Nifty Pharma closed in the green. Nifty Pharma was down 0.26 per cent at closing. Nifty Auto also remained under pressure but ended flat.
Meanwhile, Realty stocks extended gains through the day ending 3.79 per cent higher. Metals and financials also retained gains. Nifty Metal was up 0.66 per cent at closing. Nifty Bank was up 0.78 per cent while Nifty Financial Services was up 0.96 per cent.
IT stocks recovered in the second half with Nifty IT up 0.18 per cent at closing.
Mid-cap and small-cap sizzle
Midcap and smallcap stocks continued to witness strong buying action and continued to outperform the benchmark as all broader indices closed in the green.
Nifty Midcap 50 was up 0.92 per cent while Nifty Smallcap 50 was up 1.29 per cent. The S&P BSE Midcap and the S&P BSE Smallcap were up by 1.04 per cent each.
“Notably, midcap and small cap stocks continued to outperform broader indices as improved prospects of sustainable earnings recovery continue to attract investors towards this space,” said Modi.
Vinod Nair, Head of Research at Geojit Financial Services said, "Domestic markets witnessed a range bound rally with strong buying interest seen in realty and consumer durables with small- and mid-cap stocks outperforming. In the wake of increasing inflationary pressure, the domestic market is awaiting tomorrow’s RBI MPC announcement which is expected to maintain its accommodative stance"
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