The equity benchmark indices rallied on Thursday amid firm global cues, hopes of an interest rate cut by the Reserve Bank of India (RBI) on June 7 and foreign fund inflows. Sensex jumped 443 points to 81,442, while the broader Nifty closed 130 points higher at 24,750.
The indices have risen for the second session after falling for three straight sessions.
ETERNAL, PowerGrid, ICICI Bank, Reliance Industries, Adani Ports, UltraTech Cements, Sun Pharma, ITC, HUL and HDFC Bank were the top Sensex gainers rising up to 4.5 per cent. On the other hand, IndusInd Bank, Axis Bank, Bajaj Finserv, Bajaj Finance and Maruti shares were the top Sensex gainers.
Investor wealth rose by Rs 2.3 lakh crore to Rs 447.50 lakh crore on BSE today against Rs 445.20 lakh crore on Wednesday.
Devarsh Vakil, Head of Prime Research, HDFC Securities said, “Nifty is into continuation of a short-term consolidation trend. The 20-day EMA has now moved up to 24618, which is expected to serve as immediate support, while the 24900-25000 band is likely to continue acting as a resistance zone for the Nifty.”
Vinod Nair, Head of Research, Geojit Investments said, “Though profit booking remains evident at higher levels, the benchmark indices are attempting to recover their momentum amid consolidation. With a weakening dollar index and volatile US bond yields, FIIs are turning net buyers again after the recent selloffs in anticipation of final trade negotiations. Despite global uncertainty, strong indicators of economic and corporate earnings growth are encouraging investors to adopt a buy-on-dip strategy. Moreover, markets are attentively awaiting upcoming central bank decisions, with a 25-bps rate cut anticipated from both the ECB and RBI.”
Midcaps and smallcaps shares ended in the green in the current session. On BSE, the midcap index rose 177 pts to 45,679 and the small-cap index climbed 341 pts to 53,210.
On a sectoral basis, capital goods (295 pts) and realty (135 pts) indices were the top gainers on BSE. The BSE realty index ended at 7704.
Ajit Mishra – SVP, Research, Religare Broking said, “On the index front, the Nifty has reclaimed its short-term moving average (20-DEMA), and its ability to sustain above this level will be critical for any further rebound. Otherwise, profit-taking may resume. We continue to recommend a focus on theme-specific opportunities while maintaining prudent position sizing due to the mixed market signals.”
Market breadth was in the green. Out of 4129 stocks traded, 1725 slipped into losses. Around 2257 stocks could rise while 147 stocks remained unchanged.
Previous close
Sensex climbed 260.74 points or 0.32 percent at 80,998.25 and Nifty rose 77.70 points or 0.32 percent at 24,620.20.
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