BSE Sensex jumped nearly 1 percent on Thursday on hopes Prime Minister Narendra Modi would be able to steer a bill seeking to raise foreign investment limits in the insurance sector through the upper house of parliament, raising optimism about further economic reforms.
Sentiment also turned positive after the International Monetary Fund said India’s economy was recovering and its ability to withstand external shocks had improved.
The benchmark BSE index gained 0.95 percent to 28,930.41, while the broader NSE index added 0.87 percent to close at 8,776, with both indexes snapping a three-day losing streak.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
CPI is likely to be in-line with expectation hence we cannot expect more immediate action by RBI. This is unlikely to provide any immediate benefit to banks and interest sensitive sectors. Also the Q4FY15 result expectation for banks has been lowered. Today the overall trend was positive as the market expects insurance bill to be passed. The Budget Session is moving ahead with bold actions, the concerns is to pass Coal and Land bills in Rajya Sabha. We continue to believe that the trigger for India will depend on the final outcome from Budget Session.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Markets recovered today on the back of low level buying after the continuous sell-off in the past few trading sessions. Also the positive Asian markets provided support to the markets. The Asian front was up on the new of a record low interest rate by the South Korean central bank.
Nifty closed at 8776 up around 76 points. The market breadth changed to positive from negative as there were seen 1640 stocks advancing against 1231 stocks declining. The Nifty volatility index, India VIX stood at 14.7500 down around 2.51%.
The Mid cap and small cap indices closed higher, up around 1.91% and 0.90% respectively.
All the sectors ended in green and the major gainers for the day were Power and Realty, closed up around 2.27% and 1.53% respectively.
In the stocks’ front, the gainers were Cairn and SSLT which closed up around 4.83% and 4.57% respectively and on the other end the sellers were Tech Mahindra and M&M which closed down around 2.11% and 1.53% respectively.
The FIIs were sellers in the cash markets segment, sold shares worth Rs 444.65 crore on Wednesday, 11 March 2015. On the other hand the DIIs were also net sellers on 11 March 2014, sold shares worth Rs 338.96 crore as per the provisional data from the stock exchanges.
The European markets were little changed and the US index futures were trading flat.