The benchmark equity indices on the BSE and National Stock Exchange (NSE) ended nearly 2 per cent higher on Thursday following the expiry of the May-series futures and options (F&O) contracts. The gains on Thursday were led by banking, automobile and financial sector stocks.
The S&P BSE Sensex rose 595.37 points (1.88 per cent) to settle at 32,200.59. Likewise, the Nifty 50 too climbed 175.15 points (1.88 per cent) to end the day at 9,490.10. Both the benchmarks had opened around 0.5 per cent higher arlier in the day and rose higher as the day progressed.
On Wednesday, the Sensex had surged 995.92 points (3.25 per cent) to settle at 31,605.22, while the Nifty had ended at 9,314.95, up 285.90 points (3.17 per cent).
As many as 27 of the 30 stocks on the BSE benchmark ended in green on Thursday. Gains were led by Larsen & Toubro (L&T), Hero MotoCorp, IndusInd Bank, HDFC Bank, Maruti Suzuki India and Housing Development Finance Corporation (HDFC). On the other hand, ITC, State Bank of India (SBI) and Bharti Airtel were the top laggards. (see heatmap below)
All sectoral indices except Nifty PSU Bank index ended in the positive territory. The Nifty Bank index rose 2.45 per cent led by HDFC Bank, IndusInd Bank and The Federal Bank. Apart from this, the Nifty Auto index surged 3.65 per cent driven by Eicher Motors, Motherson Sumi Systems and Bharat Forge. The Nifty Financial Services index too gained 2.67 per cent led by HDFC Bank, HDFC and ICICI Prudential Life Insurance Company.
Here’s how the sectoral indices performed:
In the broader markets, the S&P BSE MidCap index ended at 11,622.06, up 154.23 points (1.34 per cent), while the S&P BSE SmallCap index closed at 10,769.34, up 150.33 points (1.42 per cent).
“In a continuation to positive expectations visible yesterday, benchmark indices gained by around 1.9 per cent, led by the Auto and Banking index. A huge EU stimulus plan provided a boost to European shares while Asian shares were affected by the US-China diplomatic issues. Indian markets are banking on continued resumption of economic activities, inspite of still high number of new infections. Further stimulus measures are also expected to boost demand in the economy and help the most impacted sectors to recover. Market is rising on the back of expectations while there has been little change in ground realities,” Vinod Nair, Head of Research at Geojit Financial Services said in a post-market statement.
The rupee on Thursday settled 5 paise down at 75.76 against the US dollar amid escalating tension between the US and China, news agency PTI reported.
According to the report which cited forex traders, the rupee traded in a narrow range as positive domestic equities and improving risk appetite were offset by a flare-up in US-China tensions.
At the interbank forex market, the rupee opened weak at 75.90, but pared most initial losses and finally settled at 75.76 against the US dollar, down 5 paise over its last close. It had settled at 75.71 against the greenback on Wednesday. During the session, the local unit witnessed an intra-day high of 75.69 and a low of 75.90.
European shares rose for the fourth straight session on Thursday and the euro perched at a two-month high, as businesses returning to work and a 750 billion euro EU stimulus plan outweighed rising US-China tensions.
Asian markets had been subdued overnight after US Secretary of State Mike Pompeo had warned Hong Kong no longer warranted special treatment under US law, but there was no stopping Europe.
Traders diving back into the markets after Wednesday’s EU plan to prop up the bloc’s coronavirus-hit economies pushed the region-wide STOXX 600 index up 1 per cent to its highest since early March.
The euro enjoyed the view at $1.1016, having risen to a two-month high. It also held at the near three-month high it had hit versus the neighbouring Swiss franc the previous day, while the dollar was largely quiet.
Euro zone bond yields were relatively stable too, with Italian borrowing costs – a key European confidence indicator – holding near eight-week lows and safe-haven German Bunds seeing another small sell-off.
– with global market inputs from Reuters
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