Sensex closed 485.51 points, or 1.88 per cent up at 26366, while Nifty index settled higher by 134.75 points at 8,069.65 for the first time since November 2015.
Benchmark indices BSE Sensex and NSE Nifty recaptured their crucial 26,300 and 8,050 levels on Thursday. Sensex closed 485.51 points, or 1.88 per cent up at 26366, while Nifty index settled higher by 134.75 points at 8,069.65 for the first time since November 2015.
Here are 5 key reasons which supported market sentiments in Thursday’s trade.
1) Domestic sentiment was buoyed as oil advanced to $50 a barrel for the first time this year as US industry data showed a decline in stockpile. Shares of oil exploration and production companies rose as crude oil prices gained.
For minute by minute stock market cover visit: Sensex surges over 450 points, Nifty above 8,000
2) Capital Goods index got a push after government approved the country’s first ‘National Capital Goods Policy’, which seeks to treble the production of capital goods in 10 years to Rs 7,50,000 crore and raise employment in the sector almost four times to 30 million. The BSE Capital Goods index was trading 7.36 per cent higher at 14,260 (at 2.01 pm). This also helped the stocks markets rally.
3) The G7 summit in Japan to take stock of the global economy also infused a sense of confidence.
4) Appreciation in Indian rupee too aided sentiments. The rupee firmed up by 4 paise to 67.29 against the dollar in noon deals on increased selling of the US currency by exporters and banks.
5) Also, prediction of good monsoon also supported market sentiments. There are 92 per cent chances of India receiving ‘normal’ and above rainfall this season with good amount of rain expected in Central India and along the West coast while some pockets of Bihar and East Uttar Pradesh could experience less precipitation.