Snapping a seven-sessions' losing streak since Budget day, bulls on Thursday are back on track on Dalal Street, with benchmark indices ending in the green by pushing Sensex over 330 points to close at 34,413.16 and Nifty over 100 points to end at 10,576.85. Domestic stocks, however, rallied after realising about the positive corporate earnings and investors' optimism of Asian markets.
Market insiders feel that healthy buying in banking, metals, auto and healthcare stocks added to the upward trajectory of the key indices. Besides, an emergence of value-buying in recently battered banking counters as well as IT stocks revived optimism on domestic bourses.
As far crude prices are concerned, Brent crude futures tumbled to a six-week low of $65.16 per barrel. A fall in crude prices is seen as positive for India, which imports most of its oil requirements. Also, the Wednesday's growth rate projection at 7.2 per cent by Reserve Bank of India (RBI) for the next financial year added optimism of domestic investors, lifting their negative sentiments from mind on investment front.
“Domestic earnings positivity and optimism in Asian peers led Indian market higher after RBI’s status quo stabilised markets. However, investors will continue to keep a watchful eye on global volatility, with Europe continuing to see vulnerability ahead of BOE rate decision,” Anand James, Chief Market Strategist, Geojit Financial Services ltd, said.
The RBI on Wednesday forecast its growth rate at 7.2 per cent for the next financial year as the rollout of GST stabilises and credit offtake improves. In its 6th bi-monthly policy review, the RBI on Wednesday maintained its status quo on the policy front, retaining the repo rate at 6 per cent and the reverse repo at 5.75 per cent.
The Sensex on Thursday resumed higher at 34,208.11 and traded between a high of 34,634.35 and a low of 34,108.76 before ending at 34,413.16.
Similarly, the Nifty closed above the key 10,550-level at 10,576.85, up 100.15 points. It shuttled between a high of 10,637.80 and low of 10,479.55.
Meanwhile, DIIs had bought shares worth Rs 461.19 crore, while foreign funds sold shares to the tune of Rs 1,022.50 crore on Wednesday, as per provisional data issued by the stock exchanges.
Sun Pharma emerged the smartest of the Sensex lot, surging 6.32 per cent. Dr Reddy's firmed up 3.18 per cent.
Also, SBI, Infosys, Axis Bank, Tata Steel, HDFC lTD, Hindustan Unilever, Kotak Bank, Maruti Suzuki, l&T, Reliance, M&M, Coal India, Bajaj Auto, ICICI Bank, IndusInd Bank, Yes Bank, HDFC Bank, TCS, Hero MotoCorp, Asian Paint and Wipro gained up to 2.97 per cent.
Shares of leading drug maker, Cipla turned buyers' fancy and gained 7.83 per cent after the company on Wednesday said its net profit rose 7 per cent at Rs 401 crore in the third-quarter ended December.
losses in Power Grid, NTPC, Tata Motors, ONGC, Adani Ports, ITC ltd and Bharti Airtel, however, squeezed the upside. Globally, there was a mixed trend in Asia at the close with a lower opening in European markets.
In the Asian region, Japan's Nikkei ended 1.13 per cent higher, Hong Kong's Hang Seng rose 0.42 per cent, while Shanghai Composite Index fell 1.43 per cent. Key indices in Europe such as Frankfurt's DAX shed 0.63 per cent, while Paris CAC 40 down 0.38 per cent in their early deals, london's FTSE too fell 0.49 per cent.
The BSE healthcare took the pole position among sectoral indices, gaining the most by 2.91 per cent, followed by realty 2.51 per cent, Telecom (1.45 per cent), Capital Goods (1.44 per cent), teck (1.41 per cent), IT (1.40 per cent), metal (1.35 per cent), consumer durables (1.32 per cent), auto (1.17 per cent) and bankex (1.12 per cent).