Markets log modest gains as metals hit sweet spot

Benchmarks ticked higher in see-saw trade on Thursday as metal stocks outperformed in tandem with soaring global commodities prices.

The BSE Metal index was the session’s best performer by a wide margin, zooming 4.46 per cent, after global aluminium prices jumped following US sanctions on Russian producer Rusal.

Other metals like nickel also surged over fears of retaliatory action by Russia, while oil prices climbed to three-and-a-half year highs on supply concerns.

On the domestic front, investor sentiment was largely optimistic ahead of quarterly earnings of some key companies, including TCS, brokers said.

The BSE Sensex jumped almost 96 points to close at 34,427.29, while the broader NSE Nifty finished at 10,565.30, up 39 points.

“Metal stocks led the market higher against the backdrop of...Higher metal prices. IT sector continued to support the market anticipating better Q4 results. RBI minutes will be seen in the backdrop of the continued ascent in oil prices,” said Anand James, Chief Market Strategist, Geojit Financial Services.

The 30-share Sensex resumed higher and advanced to 34,478.82, but soon slipped on profit-taking to touch a low of 34,358.91. It finally ended 95.61 points, or 0.28 per cent, higher at 34,427.29. The gauge had lost 63.38 points in the previous session.

The NSE 50-share index, after moving between 10,572.20 and 10,546.20, ended at 10,565.30, up 39.10 points, or 0.37 per cent. On a net basis, domestic institutional investors (DIIs) bought equities to the tune of Rs 869.70 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 915.71 crore yesterday, as per provisional data.