The BSE Sensex and NSE Nifty closed 2 per cent higher on Thursday after China's key stock market index surged 5.3 per cent amid F&O expiry.
Bulls dominated bears in the domestic equity markets on Thursday as the key benchmark indices soared over 2 per cent on the back of strong global markets amid F&O expiry. The BSE Sensex and NSE Nifty soared 516.53 points and 157.10 points at 26,231.19 and 7,948.95, respectively.
Among the sectoral indices on the Bombay Stock Exchange, the BSE Consumer Durables index gained the most — 5.11 per cent at 11,144.40, followed by the BSE Realty index (up 4.02 per cent at 1,284), BSE Healthcare index (up 2.93 per cent at 17,698.68) and BSE Oil & Gas index (up 2.83 per cent at 8773.56). Rest all other indices ended in green.
Dipen Shah, head, private client group research, Kotak Securities, said, “Markets bounced back sharply on the back of supportive global cues and F&O expiry. While the concerns on China remain, they were overlooked for the day, partly due to the strong showing of that market. We maintain that, the passage of important reforms bills like the GST Bill will be the important trigger for the markets to move up from the current levels. Passage of GST Bill may also have implications on the timing of future rate cuts in India. Apart from this, the US Fed policy meeting outcome and developments in China will have an impact on the markets.”
In the 50-share Nifty pack, HDFC (up 8.66 per cent), Cairn India (up 7.48 per cent) and Vedanta (up 7.01 per cent) remained in the list of top gainers. BHEL, Bajaj Auto and TCS declined the most 3.27 per cent, 2.36 per cent and 0.38 per cent and stood top losers on the performance chart of the index.
Market breadth for the day remained positive as advances to declines ratio for Nifty stood at 41:9 for the day. Volumes for Nifty stocks remained at 3,141 lakh, higher than volumes of 2,231 lakh logged in Wednesday’s trading session.
Shreyash Devalkar, fund manager, equities, BNP Paribas Mutual Fund, said, “Markets opened strong with an upside gap after positive global cues led by Dow and other Asian markets. They gained from strength to strength as the day progressed on higher volumes. One is however not sure how long this positive mood would last simply because volatility and uncertainty still remain.”
The India VIX (volatility) index on the National Stock Exchange fell 13.60 per cent to 22.0425.
Crude oil prices jumped over 4 per cent in the international markets on Thursday. Hiren Dhakan, associate fund manager, Bonanza Portfolio, said, “Unexpected fall in US crude inventories spiked oil prices in the international markets. Rising crude price also supported Cairn India and Vedanta shares on the domestic bourse on Thursday.”
Asian peers, Hang Seng, Nikkei and Shanghai closed 3.60 per cent, 1.08 per cent and 5.34 per cent higher at 21,838.54, 18,574.44 and 3,083.59, respectively.
2.50 pm: The top gaining sectoral indices on the BSE were realty up by 3.81 per cent, Oil and Gas up by 3.25 per cent, Consumer Durables up by 3.15 per cent and Healthcare up by 2.92 per cent.
2.42 pm: Sentiments remained up-beat on report of India Ratings that the government can spend an additional Rs 37,200 crore more this financial year in infra investments or bank recapitalisation and still not miss the 3.9 per cent fiscal deficit target, attributing the surplus to the higher indirect tax collections, which till July rose a healthy 39 per cent and a massive decline in crude prices. NSE Nifty was up 166.45 points at 7,958.
2.33 pm: Sensex was up 2.14 per cent at 26,263. Meanwhile, Union Minister of Urban Development, Venkaiah Naidu on Thursday declared nominations of 98 cities for NDA government’s flagship program: #Smartcities Mission. Share price of National Building Construction Corporation (NBCC) was up 5.30 per cent at Rs 984.
1.58 pm: Upbeat global equity markets sparked a wave of bargain-hunting ahead of the expiry of derivative contracts at the end of the session. The BSE benchmark index gained as much as 2.11 percent and was up 1.8 per cent at 26,190.
1.24 pm: Sensex jumps 510.47 points at 26,225.13, Nifty 143.45 points up at 7,935.30
1.15 pm: Sensex 493.23 points up at 26,207.89. Nifty 144.80 points up at 7,936.65 during the same time. Realty stocks up 3.12 per cent.
12.21 pm: The BSE Oil and Gas index was up 2.5 per cent at 8,745.11. Sensex and Nifty were up over 1.3 per cent at 26,048 and 7,901.
11.48 am: Sensex was up 294 points at 26,008. In the 30-share Sensex pack, HDFC (up 6 per cent), Vedanta (up 5.32 per cent) and Cipla (up 3.62 per cent) were among the top gainers.
10.58 am: Cairn India was trading 6.36 per cent higher at Rs 138. According to Eikon data, the scrip is trading at 5.9x on 12-month PE vs 9.7x of rivals.
10.53 am: Brokers said short covering by participants as today being the last trading session of August contracts in the derivatives space supported the market. Sensex was up 369 points at 26,084.
10.33 am: Sensex was up 337 points at 26,051.
9.49 am: In the 50-share Nifty pack, Vedanta, Cairn India and HDFC were trading 5.79 per cent, 5.05 per cent and 4.30 per cent higher at Rs 90.50, Rs 136.30 and 1149.75, respectively. The NSE Nifty was up 1.11 per cent at 7,878.35.
The BSE Sensex was up 1.12 per cent at 26,002.
9.26 am: Sensex and Nifty were up 280 points and 86.35 points at 25,996 and 7,877.
Domestic equity markets opened higher on Thursday tracking firm trading in rest of the Asian markets. The BSE Sensex and NSE Nifty opened 422.37 points and 129.75 points higher at 26,137.03 and 7,921.60, respectively.
All the sectoral indices on the Bombay Stock Exchange opened in green. Realty stocks were up over 2.5 per cent.
Alex Mathews, head research, Geojit BNP Paribas Financial Services, said “Short covering is expected on Thursday due to August F&O expiry.”
According to SMC Global Securities, Asian stocks rose on Thursday as a sharp rebound on Wall Street helped soothe investors’ tattered nerves, while the dollar rallied as risk aversion eased. Overnight, US stocks rallied on expectations that the Federal Reserve will hold off from hiking interest rates next month due to mounting global uncertainties, including China – the very factors that prompted heavy selling in the previous sessions.
Shares of Bharti Airtel and Sun TV Network will remain in focus on Thursday. Bharti Airtel after market hours on Wednesday announced that it has signed a definitive agreement to acquire 100 per cent equity stake in Augere Wireless Broadband India (Augere), which holds 20 MHz of BWA spectrum in the telecom circles of Madhya Pradesh and Chhattisgarh. Bharti Airtel was trading 2.08 per cent higher at Rs 346.80 in the early trade.
Sun TV Network after market hours on Thursday said that it has partnered with HOOQ, Asia’s biggest premium video-on-demand service in a multi-year deal. Sun TV shares were up 1.06 per cent at Rs 329.20 apiece.
On Wednesday, the BSE Sensex and NSE Nifty closed over 1 per cent lower at 25,715 and 7,792, respectively.
As per provisional figures, foreign institutional investors (FIIs)/ Foreign Portfolio Investors (FPIs) sold shares worth net Rs 2,345.77 crore August 26 while domestic institutional investors bought shares worth Rs 1,881.08 crore.
New York: Wall Street racked up its biggest one-day gain in four years on Wednesday as fears about China’s economy gave way to bargain hunters emboldened by expectations the US Federal Reserve might not raise interest rates next month.
London: Britain’s top share index sank on Wednesday, not far from its lowest closing levels since the end of 2012, as fears about Chinese growth gnawed and a commodities sell-off rattled markets across Europe.
Tokyo: Japan’s Nikkei share average rose on Thursday after a strong rebound on Wall Street eased investors’ fears of a prolonged global market rout.
Hong Kong: The Hang Seng Index was up 2.31 percent.
(With inputs from agencies)