After three straight sessions of losses, the Indian stock market bounced back on Thursday on positive global cues with the best gains in two months. Positive global stocks, cooling crude oil and buying after a small correction were the triggers for change in the trend at the beginning of the week. Short covering in index heavyweights like HDFC Bank, Infosys, SBI and Reliance also helped the prices to move up.
The Sensex, jumped 638.70 points at 52,837.21. The Nifty 50 index added 191.95 points at 15,824.05. In the index majors, Infosys, ICICI Bank, Reliance and Bajaj Finance were the major gainers. On the other hand, Hindustan Unilever, Asian Paints and Bajaj Auto declined. All the sectors closed with gains, however, metals, information technology, real estate and financial services were the biggest gainers. The BSE Mid-Cap index rose 1.49 per cent and the BSE Small-Cap index gained 1.52 per cent.
Metal stocks were under investors’ radar on the back of optimism around the possibility of robust June quarter earnings. The positive sentiment was also aided by the government announcing production-linked incentives for speciality steel manufacturers.
The action on the market was focused on earnings. Hindustan Uniliver crashed post lower than expected results. However, Bajaj Auto reported good results but profit booking was seen on the counter. Despite lower than expected numbers, Bajaj Finance and Bajaj Finserve rallied.
“Despite the positive movement, the short term texture of the market is still on the downside. However, today’s sharp bounce back indicates the pullback rally is likely to continue if key indices succeed to trade above the 20-day simple moving average of 15,750 on Nifty. On the other side, below 15700/ 52400, the uptrend texture would be vulnerable,” Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities said.
On the back of positive global cues, Sensex & Nifty registers the biggest gain in two months
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