The headline indices Sensex and Nifty jumped on Thursday, backed by a rally in auto and financial heavyweights amid positive global cues. After rallying 565 points intra-day, the 30-share Sensex closed 396.22 points, or 1.03 per cent, higher at 38,989.74. The broader NSE Nifty gained more than 133 points to close at 11,573.30. Vedanta, M&M, ICICI Bank, Tata Steel, ONGC, Maruti Suzuki, IndusInd Bank, L&T, Hero MotoCorp, Bajaj Finance and Kotak Bank, were the biggest gainers in the Sensex pack, gaining up to 6.5%. Yes Bank, Infosys, HUL, HCL Tech, HDFC, NTPC, PowerGrid and TCS were among the biggest losers, shedding up to 5%. While private sector banks posted a robust rally, Yes Bank shares emerged as top Sensex loser even as it waited for RBI approval for increasing the bank’s authorised share capital. The shares hit a six-year low as they plunged 4.93 percent to close at Rs 51.05 on BSE.
Taking stock of the robust rally, Ajit Mishra Vice President, Research, Religare Broking said that the stock market regained momentum and surged over a percent on the F&O expiry day. “Fall in the crude oil prices combined with firm global cues helped index to make a strong start. It further strengthened with noticeable buying interest in index majors from across the board,” he said. Mishra advised investors to follow a “buy on dips” approach. In his view, Nifty could test 11,700-11,800 in the near future thus any intermediate dip should be considered as a buying opportunity.
Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities said that the Nifty managed to close higher on the day of weekly expiry after a long time. “On daily basis, Nifty closed above 11540, which would bring positive sentiment in the short term. While we could see 11700/11720 levels, its sustenance above this level would result in a rally towards 11800,” he noted. Meanwhile, the domestic currency rupee closed 8 paise higher at 70.95 against US dollar.