With the Sensex climbing 443.79 points to settle at 81,442.04; and Nifty rising 130.70 points to 24,750.90, Indian benchmark indices saw a rise for the second day in a row on Thursday, mostly driven by buying in blue-chip stocks ICICI and Reliance Industries as foreign capital inflow remained steady.
The Reserve Bank’s much-awaited rate-cut announcement on June 6 also supported market sentiment, said traders.
The central bank’s rate-setting panel started its three-day brainstorming on monetary policy as expectations are high of a 25 bps or even a jumbo 50 bps rate cut to fuel economic growth amid uncertainties created by Trump’s tariff moves. The decision of the Monetary Policy Committee (MPC), headed by the RBI Governor Sanjay Malhotra, will be announced on Friday.
The 30-share BSE gained over 900 points in the session before succumbing to profit-booking to close 0.55 per cent lower at 81,442.04. Its intraday jump was 912.88 points or 1.12 per cent to 81,911.13. The NSE Nifty rose 130.70 points or 0.53 per cent to 24,750.90.
As many as 2,257 stocks advanced while 1,725 declined and 147 remained unchanged on the BSE.
Eternal was the biggest gainer in the Sensex pack, jumping 4.50 per cent, followed by Power Grid, ICICI Bank, Reliance Industries, UltraTech Cement, Adani Ports, Sun Pharma, ITC and Hindustan Unilever were also among the winners.
In contrast, IndusInd Bank, Axis Bank, Bajaj Finserv and Bajaj Finance were among the laggards.
“Despite global uncertainty, strong indicators of economic and corporate earnings growth are encouraging investors to adopt a buy-on-dip strategy. Moreover, markets are attentively awaiting upcoming central bank decisions, with a 25-bps rate cut anticipated from both the ECB and RBI,” said Vinod Nair, Head of Research at Geojit Investments Limited.
With a weakening dollar index and volatile US bond yields, FIIs are turning net buyers again after the recent selloffs in anticipation of final trade negotiations.
Foreign Institutional Investors (FIIs) turned buyers on Wednesday, as they bought equities worth ₹1,076.18 crore, according to exchange data.
Despite volatility during the day, markets closed in the green due to a lack of strong cues from global markets that led to a flat start for Nifty, but ended in swift recovery, said Ajit Mishra, SVP, Research, Religare Broking Limited. However, he added that profit-booking in the latter half of the day had cut don the gains.
The BSE smallcap gauge climbed 0.65 per cent and the midcap index rallied 0.39 per cent.
Among sectoral indices, realty jumped 1.79 per cent, services (1.09 per cent), healthcare (0.88 per cent), consumer discretionary (0.73 per cent), industrials (0.60 per cent), commodities (0.51 per cent) and financial services (0.43 per cent).
On the other hand, auto and oil & gas were the laggards.
Global oil benchmark Brent crude climbed 0.35 per cent to USD 65.14 a barrel.
On Wednesday, the 30-share BSE Sensex climbed 260.74 points or 0.32 per cent to settle at 80,998.25. The Nifty went up 77.70 points or 0.32 per cent to 24,620.20.
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