Market benchmarks rose for the second consecutive session on Thursday on strong buying in consumption, metals and bank stocks amid a bullish trend overseas. However, depreciating rupee and foreign fund outflow limited the gains, traders said.
The 30-share BSE Sensex closed 427.49 points or 0.80 per cent higher at 54,178.46. The broader NSE Nifty rose 143.10 points or 0.89 per cent to 16,132.90.
Titan was the top gainer in the Sensex pack, rising 5.69 per cent, after the Tata group firm reported a three-fold jump in sales in the April-June quarter.
Tata Steel, Larsen & Toubro, IndusInd Bank, M&M, ICICI Bank, Kotak Mahindra Bank and HDFC Bank were other major gainers, rising up to 4.88 per cent.
In contrast, Dr Reddy’s, Nestle India, Bharti Airtel, Reliance Industries, Bajaj Finance, HUL and Bajaj Finserv were among the laggards, falling 1.26 per cent.
The market trend was positive with 21 out of 30 Sensex stocks closing in the green.
“Domestic stock markets mirrored an upbeat mood in global equity markets as investors digested the latest FOMC minutes, while a fall in crude and commodity prices boosted investor sentiment. Based on expectations of moderating inflation. But in the near term, this bullishness may dominate the market.” Vinod Nair, Head of Research, Geojit Financial Services.
The rupee is expected to depreciate due to the latest measures by the RBI to boost foreign exchange inflows, he added.
Ajit Mishra, VP – Research, Religare Broking Ltd said supportive global cues triggered a gap-up opening in the benchmark.
“The recent rally in the index has certainly eased some pressure, but it is important to retain the key amid mixed sentiment. Apart from global markets, the focus will be on IT major TCS results for cues,” he added.
In the broader market, BSE’s smallcap gauge rose 1.30 per cent and midcap index 1.19 per cent.
All BSE sectoral indices ended the highest in metals, up 4.49 per cent, followed by consumer durables (3.24 per cent), realty (2.55 per cent), basic goods (2.22 per cent), capital goods (2.01 per cent). and industry (1.73 percent).
World stocks edged higher despite minutes of the last US Federal Reserve meeting expected to rise by 75 basis points in July to contain inflation. The minutes were released on Wednesday.
In Asia, markets in Tokyo, Seoul, Shanghai and Hong Kong ended higher.
European markets were also trading in positive territory in mid-session deals. On Wednesday, there was an increase in the US markets.
Meanwhile, international oil benchmark Brent crude rose 0.05 per cent to $100.7 a barrel.
On Thursday, the rupee declined by 19 paise to close at 79.13 (provisional) against the US dollar.
Foreign institutional investors started selling shares worth a net Rs 330.13 crore on Wednesday after a day’s relief, according to exchange data.