With the Nifty50 hitting the record 21,800 mark for the time, benchmark equity indices closed higher for the fifth straight session on Thursday, led by a global rally over optimism that the US central bank would start cutting rates in March.
The 30-share BSE benchmark Sensex advanced 372 points or 0.52% to settle at 72,410. The broader NSE Nifty surged 124 points or 0.57% to end at 21,778.
Among the Sensex stocks, NTPC, M&M, Power Grid, and Nestle were the top gainers, rising 2-3%. Tata Motors, ITC, Bharati Airtel and HUL also closed higher. On the other hand, L&T, Wipro, UltraTech Cement, and Asian Paints closed in the red.
Zomato shares closed 3% lower after the firm received a Rs 402-crore show-cause notice from the goods and services tax (GST) authorities over unpaid dues.
HUDCO shares closed over 12% higher after the firm signed a Memorandum of Understanding (MoU) with the state government of Gujarat for an investment of up to Rs 14,500 crore for financing the housing and urban infrastructure projects in Gujarat.
Sector-wise, Nifty Auto, FMCG, Metal, Pharma, Healthcare, PSU Bank and Oil & Gas closed over 1% each. While only Nifty IT and Nifty Consumer Durables closed in the red.
Meanwhile, the market capitalisation of all listed companies on BSE surged by Rs 1.7 lakh crore to Rs 363.01 lakh crore. The market breadth was skewed in the favour of the bears. About 1,811 stocks gained, 1,976 declined, and 133 remained unchanged on the BSE.
Experts View
“The benchmark index maintained its optimism and hit fresh high owing to ease in Red Sea issue and reversal of FII inflows. A decline in crude oil prices below $80 prompted widespread purchasing across oil and energy companies,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The Asian market too advanced due to an expectation of more aggressive rate cuts by fed next year. While the global market was largely experiencing consolidation due to valuation concerns,” Nair said.
Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty remained firmly in bullish territory as the index surged to a new all-time high. Strong put writing at the 21700 strike bolstered the bulls, propelling the index toward 21800. Short-term support is situated at 21700, signaling a continued bullish sentiment. A decisive move above 21800 could lead the index toward the 22000 mark.”
Global Markets
World shares gained on Thursday as market wagers on ever-more aggressive interest rate cuts stretched a rally in U.S. stocks and bonds.
In early trade, European shares added 0.2% to approach a 23-month high hit two weeks ago, and were on course for gains of about 13% this year.
Wall Street was set for gains, too, with S&P 500 futures up 0.1% to another record high and Nasdaq futures firming 0.2%.
Oil Prices Decline
Oil prices declined on Thursday as concerns eased about shipping disruptions along the Red Sea route. Brent crude futures declined $1.05 to $78.49 a barrel, while US WTI crude futures were trading $1.13 lower at $72.95 a barrel.
Rupee Ends Higher
The Indian rupee strengthened on Thursday while far forward premiums rose to their highest in more than two months on rising expectations of the U.S. Federal Reserve easing monetary policy cycle.
The rupee closed at 83.1650 to the US dollar, up from 83.3450 in the previous session. The currency posted its biggest rise in a single rise in nearly two weeks. The dollar index was at its lowest since July, and Asian currencies rose.
(With inputs from agencies)
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