Comments
Benchmark indices closed higher for the third consecutive session on Thursday.
Market opened on a positive note as global markets rallied. Indices extended gains through the day. Though off the day’s high, indices closed higher led by FMCG, metals, auto and financials. IT stocks faced pressure.
The BSE Sensex closed at 55,464.39, up 817.06 points or 1.50 per cent. It recorded an intraday high of 56,242.47 and a low of 54,982.82. The Nifty 50 closed at 16,594.90, up 249.55 points or 1.53 per cent. It recorded an intraday high of 16,757.30 and a low of 16,447.90.
Breadth remains positive
The market breadth remained positive with 2,433 stocks advancing on the BSE as against 929 that declined while 98 remained unchanged. Furthermore, 12 stocks hit the upper circuit as compared to the 5 stocks that were locked in the lower circuit. Besides, 94 stocks touched a 52-week high level and 19 touched a 52-week low.
Santosh Meena, Head of Research, Swastika Investmart Ltd said, Indian market witnessed a strong recovery after a brutal fall thanks to some positive news flows on the Russia-Ukraine standoff that to rally in global equity markets and cool off in commodity prices.”
“The outcome of state election results is also acting as a tailwind for the Indian equity market however it has the impact of only one day and the main focus of the market will remain on the Russia-Ukraine issue because there are still uncertainties,” added Meena.
Though markets extended gains, “A weak western market ahead of ECB & US CPI data and rise in crude prices added volatility in between,” as per Vinod Nair, Head of Research at Geojit Financial Services
Aishvarya Dadheech, Fund Manager, Ambit Asset Management said, “The Market saw a swift recovery post a sharp pullback in commodities prices after Ukraine hinted at midway talks. Back home, the strong performance of the incumbent party in the state elections also provided much-needed support to the market. State elections’ outcome took away the political instability risk in India for at least two years”
“We believe investors still need to be vigilant because the uncertainty of geopolitical standoff still looms large. Commodity prices are least likely to see a secular downturn even after war subsides because sanctions will continue to disrupt the global supply chain. Unless sanctions are withdrawn, the global markets can remain volatile in the coming months and India will not remain insulated,” added Dadheech.
Hindustan Unilever, Tata Steel, Grasim, State Bank of India and JSW Steel were the top gainers on the Nifty 50 while Coal India, Tech Mahindra, Dr Reddy, UPL and ONGC were the top losers.
IT under pressure
On the sectoral front, all indices except Nifty IT closed in the green. FMCG, metals, auto, realty and financials recorded higher gains.
Nifty FMCG was up over 3 per cent. Nifty Consumer Durables, Nifty Metal, Nifty Realty and Nifty PSU Bank each closed over 2 per cent higher. Nifty Bank, Nifty Financial Services, Nifty Private Bank and Nifty Auto were each up nearly 2 per cent.
Meanwhile, Nifty IT closed 0.12 per cent lower.
Broader indices
Broader indices also closed in the green.
Nifty Midcap 50 was up 0.69 per cent while Nifty Smallcap 50 was up 1.59 per cent. The S&P BSE Midcap was up 1.06 per cent while the S&P BSE Smallcap was up 1.18 per cent.
The volatility index softened 6.86 per cent to 25.58.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.