Benchmark indices ended higher for the second straight session on Thursday led by heavy buying in Bajaj Finance and Bajaj Finserv shares amid a mixed trend in the global equity markets. Federal Reserve Chairman Jerome Powell on Wednesday pointed to the robust labour market as evidence the economy is not in recession. The statement strengthened global market sentiment.
Sensex jumped 1,041.47 points to end at 56,857.79 and Nifty advanced 287.80 points to 16,929.60. Bajaj Finance was the top Sensex gainer ending 10.68 per cent higher, followed by Bajaj Finserv rising 10.14 per cent post June quarter earnings.
Other Sensex gainers were Tata Steel, Kotak Mahindra Bank, IndusInd Bank, Infosys, Tech Mahindra and Nestle.
Bharti Airtel, UltraTech Cement, Dr Reddy’s, ITC and Sun Pharma were the only Sensex losers, falling up to 1.19 per cent.
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Prashanth Tapse – Research Analyst, senior vice president (Research), Mehta Equities said, “Dalal Street staged a spectacular rebound, echoing global stock markets’ optimism amid oversold conditions, with Fed’s decision to hike rates by 75 bps gave Nifty bulls a signal to rise. The positive takeaway was that the benchmark Nifty and many momentum stocks shined all-throughout the day. The buying stampede simply continued. Technically speaking, if Nifty’s holds above its make-or-break support at 15,621 mark then the interweek trading theme could shift to ‘Enthused Bulls and Arrested Bears’.”
Share Market update: Sensex zooms 1,000 pts, Nifty above 16,900; Bajaj twins top gainers
Mid cap and small cap indices rose 221 points and 171 points, respectively.
Banking and IT shares were the top sectoral gainers with their BSE indices zooming 729 points, and 709 points, respectively.
The BSE metal index too rose 317 points to 17,391.
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Vinod Nair, Head Of Research at Geojit Financial Services said, “Positive cues from global markets following the Fed policy outcome, as well as domestic large caps’ upbeat earnings, drove the market rally. The Fed’s decision was as expected, while their positive comment dismissing the possibility of a recession and hinting at a slower pace of rate hikes in the coming months boosted global sentiments. As a result, the Indian rupee strengthened, potentially attracting foreign funds into the domestic market. Domestic investors are now bracing for the RBI’s MPC meet next week expecting a rate hike by 25-50 basis points.”
Market breadth was positive with 1,902 stocks ending higher against 1,427 stocks falling on BSE. 150 shares were unchanged.
Foreign institutional investors turned net sellers on Wednesday, offloading shares worth Rs 436 crore, as per NSE data.
Market on Wednesday
Benchmark indices snapped two sessions of losing streak on Wednesday led by a rally in banking, capital goods and pharma stocks. Sensex ended 547.83 points higher at 55,816 and Nifty gained 158 points to 16,641. Market cap of BSE-listed firms rose to Rs 259.71 lakh crore in the previous session. Sun Pharma, SBI, L&T, TCS and Asian Paints were the top Sensex gainers, rising up to 3.39 per cent.
Global markets
Germany’s DAX slipped 0.4% to 13,119.96 and the CAC 40 in Paris was down 2 points at 6,255.76. Britain’s FTSE 100 edged 0.2% lower to 7,333.16.
In Asia , Hong Kong’s benchmark Hang Seng index slipped 0.2% to 20,622.68. Tokyo’s Nikkei 225 picked up 0.4% to 27,815.48, while the Shanghai Composite index added 0.2% to 3,282.58. In Seoul, the Kospi advanced 0.8% to 2,435.27.
