Indian stock markets opened higher on Thursday with Sensex rallying as much as 150 points and Nifty crossing 10,550-mark while the shares of Punjab National Bank extended yesterday's losses and tanked over 8% today. Shares of HDFC, Infosys, ICICI Bank surged.
Indian stock markets opened higher on Thursday following yesterday’s gain on Wall Street which has turned the global cues positive. The S&P BSE Sensex opened 51.62 points or 0.15% at 34,207.57 whereas NSE Nifty added 37 points or 0.35% to begin at 10,537.9. Domestic equity markets are likely to be steered by the WPI data due later today at 12 pm. Shares of Punjab National Bank extended losses on Thursday after the State-owned bank detected a $1.77 billion (about Rs 11,400 crore) fraud in a Mumbai branch. The stock of PNB tanked as much as 8.47% to the day’s low of Rs 133.45 on BSE. Within minutes of opening up, the key equity indices extended the gains with Sensex rising to a day’s high of 34,305.
Shares of Adani Ports, ICICI Bank, Tata Motors, Infosys, HDFC were the lead gainers among the Sensex components while the stocks of Asian Paints, Hero MotoCorp, Axis Bank shed over 1% each. The heavyweight shares of ICICI Bank, HDFC, Infosys, RIL, HDFC Bank, Maruti Suzuki contributed the most to the Sensex gains. Jointly these six stocks added about 130 points while a decline in shares of Axis Bank, ITC and Asian Paints washed off 30 points from the index.
Earlier yesterday, the state-run Punjab National Bank detected a $1.77 billion (about Rs 11,400 crore) scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking from a branch in Mumbai to secure overseas credit from other Indian lenders. PNB has suspended 10 officers and referred the matter to CBI for investigation. According to a PTI report, Financial Services Secretary Rajiv Kumar said the finance ministry has taken proactive steps by asking the lender to report the matter to CBI and Enforcement Directorate (ED) so that action can be taken quickly.
A market-wide recovery was witnessed in Indian equities on Thursday, as all the broader indices traded in green and nine out of sectoral indices inched up in the morning trades. Among the broader market indices, other than Nifty 50, Nifty Next 50, Nifty 100, Nifty 200, Nifty 500, Nifty Sml100 Free, Nifty Midcap 50, Nifty Mid100 Free rose up to 0.4%. While nine out of 11 sectoral indices traded in green with Nifty Metal, Nifty Media, Nifty Fin Service leading the charge while Nifty Pharma and Nifty FMCG hovered in red.
Wall Street surged on Wednesday as investors shrugged off stronger-than-expected inflation data and snapped up shares of Facebook, Amazon.com and Apple, Reuters said in a report. The fourth straight day of gains in the S&P 500 saw a return to the “fear of missing out” mentality that accompanied Wall Street’s rally in recent months ahead of a slump last week into correction territory, Reuters added. Facebook jumped 3.7 percent while Amazon.com and Apple both rose more than 1.8 percent. The Dow Jones Industrial Average jumped 1.03 percent to end at 24,893.49 while the S&P 500 rose 1.34 percent to finish at 2,698.63. The Nasdaq Composite surged 1.86 percent to 7,143.62.