Sensex closes 514 points higher, Nifty above 17,200 on sustained buying

Benchmark indices closed in the green on Thursday, with Nifty recording a fresh all-time high led by IT, FMCG and pharma.

The market opened on a positive note and extended gains during the day as data such as robust GST collections for August and the IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) at 52.3 in August (though down from 55.3 in July) impacted investor sentiment. A sharp rebound in IT helped the market gain further.

The BSE Sensex closed at 57,852.54, up 514.33 points or 0.90 per cent. It hit an intra-day high of 57,892.37 and a low of 57,287.79. The Nifty 50, which recorded a fresh all-time high of 17,245.50, closed at 17,234.15, up 157.90 points or 0.92 per cent. It recorded an intra-day low of 17,059.70.

Breadth turns positive

The breadth of the market turned positive with 1,983 stocks advancing on the BSE, as compared to 1,205 stocks that declined, while 152 remained unchanged. Further, 362 stocks hit the upper circuit as compared to the 183 stocks that were locked in the lower circuit. Besides, 224 stocks touched a 52-week high and 21 touched a 52-week low.

S Ranganathan, Head of Research at LKP Securities said, "Bulls took complete control today as the indices rose by almost a percentage to hit record highs on the back of the IT, cement and FMCG biggies.”

“The broader markets were buzzing as the formalisation of the economy is enabling organised branded players to gain share. High-Frequency Indicators are pointing towards an uptick in rail freight, consumer durables and appliances ahead of the festive season," Ranganathan added.

Shree Cements, HDFC Life, Cipla, TCS and Hindustan Unilever were the top gainers on the Nifty 50, while M&M, ONGC, Bajaj Auto, Divi’s Lab and Tata Motors were the top laggards.

Narendra Solanki, Head-Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said: “Indian markets started on a positive note despite mixed Asian market cues, which traded lacklustre as investors eye US jobs data. During the afternoon session markets added to the gains on the back of sustained buying activity by traders.

“Adding to the already positive sentiment a private report said the ongoing economic recovery will quickly take India above pre-pandemic levels in most sectors of the economy, adding that the improved health of the Indian financial sector is also a positive factor for economic growth. Investors also cheered RBI’s statement that India's holding of IMF's Special Drawing Rights (SDR) has gone up to SDR 13.66 billion, which is equivalent to $19.41 billion,” added Solanki.

Auto, PSU banks drag

On the sectoral front, all indices except Nifty Auto and Nifty PSU Bank closed in the green. IT, FMCG, consumer durables, realty and pharma recorded the highest gains.

Nifty Auto was down 0.21 per cent, while Nifty PSU Bank was down 0.45 per cent.

Meanwhile, Nifty IT was up 1.67 per cent at closing. Nifty FMCG and Nifty Consumer Durables were up 1.64 per cent and 1.67 per cent, respectively. The Nifty Pharma and Nifty Healthcare Index were up 0.77 per cent and 0.57 per cent, respectively. Nifty Realty was up 1.25 per cent.

Financials also gained with Nifty Bank and Nifty Financial Services up 0.70 per cent and 0.81 per cent, respectively.

Broader indices

The broader indices also closed in the green, outperforming the benchmarks.

Nifty Midcap 50 was up 1.38 per cent, while Nifty Smallcap 50 was up 1.02 per cent. The S&P BSE Midcap was up 0.93 per cent, while the S&P BSE Smallcap was up 0.80 per cent.

The volatility index rose 0.38 per cent to 14.24.

COMMENT NOW