Adani Enterprises surged 5 per cent on the back of strong earnings, while Bajaj Finance, HDFC and SBI Life Insurance gained 3 per cent each. After a day's hiatus, bulls were back on Dalal Street as benchmark equity indices settled higher on Thursday. Domestic markets snubbed the muted global sentiments, even as the US Federal Reserve increased interest rates by another 25 basis points, in line with expectations.
Falling crude oil prices, eased down US dollar and buoyant sentiments of the global investors are the key factors supporting the rise in Indian equity markets. Furthermore, the Q4 results of India Inc have missed any major accidents so far as the earnings have been mostly as per the expectations.
For the day, BSE Sensex surged 555.95 points, or 0.91 per cent, to settle at 61,749.25, while NSE's Nifty50 gained 165.95 points, or 0.92 per cent to settle at 18,255.80. Broader markets were in line with the headline peers as BSE midcap and smallcap indices rose about a per cent each. Fear gauge India VIX eased over a per cent to 11.73-levels.
The US Federal Reserve softening its stance over future rate hike prospects cheered investors' mood which triggered a fresh bout of buying in banking stocks. With India's growth indicators showing good signs of revival and crude oil prices staying lower, investors are betting big on local equities even as a haze over global economic growth persists, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
"Technically, the Nifty cleared the 18,150-resistance mark, and post-breakout it intensified the positive momentum. The index has also formed a long bullish candle which supports a further uptrend from the current levels. As long as the index is trading above 18,150, the uptrend wave is likely to continue up to 18,350-18,400," he said.
On a sectoral front, only the Nifty FMCG index settled in the red. Among the gainers, Nifty Financial Services Index rose 2 per cent, followed by a one per cent rise in Nifty Metal and PSU Bank indices. Nifty Private Bank, Pharma and Consumer Durable indices also posted decent gains.
In the Nifty50 pack, Adani Enterprises surged 5 per cent on the back of strong earnings. Bajaj Finance, HDFC and SBI Life Insurance gained 3 per cent each, while HDFC Bank, Bharat Petroleum, Bajaj Finserv, Asian Paints, Adani Ports and State Bank of India rose 2 per cent, each.
Among the losers, IndusInd Bank and UPL shed more than a per cent each. Nestle India, Power Grid, ITC, Tata Consumer Products and Tata Motors were among the other top laggards on the benchmark index for the day. Following a widely expected rate hike by the Fed and consistent foreign support, the domestic equities resumed their bullish momentum, driven by gains across major sectors, said Vinod Nair, Head of Research at Geojit Financial Services. "However, the US market faced losses as the Fed reiterated concerns over elevated inflation despite softening its language on future rate hikes. Signs of returning contagion fears in regional US banks also weighed on the global market mood," he said. A total of 3,640 shares were traded on BSE on Thursday, of which 2,244 settled in green. 1,278 stocks ended the session with cuts while 118 shares remained unchanged. A total of 193 shares hit their upper circuit, whereas 113 tested the lower circuit levels for the day. In the broader markets, Insurance stocks under the limelight General Insurance Corporation surged 20 per cent, while New India Assurance Company gained 15 per cent on the back of optimism for the sector. Suryoday Small Finance Bank rose 14 per cent, while Cholamandalam Investment and Finance Company jumped 7 per cent after strong quarterly performance.
Among the losers, Anupam Rasayan India and Punjab Chemicals and Crop Protection dropped 6 per cent, each, after dull quarterly performances. Petronet LNG shed 4 per cent on the back of margin pressure in Q4, while Jammu & Kashmir Bank dropped 4 per cent on the back of profit booking.