Benchmark indices surged to fresh record highs on Thursday as heavy buying in heavyweight stocks late in the session lifted the Nifty 50 and Sensex by nearly 2 per cent, their biggest single-day gain in more than three months.
The sharp rise took the 30-share BSE Sensex index to the 83,000 level for the first time.
The index, however, closed the session at 82,963 with a gain of 1.8 per cent. The Nifty 50 rose 1.9 per cent to 25,389. This was the biggest single-day gain since June 7. The gains were supported by inflows of Rs 7,695 crore from foreign funds. The rally, which came amid positive global cues, was supported by increased expectations of a 25 basis point rate cut by the US Federal Reserve after inflation data came in line with expectations, said Siddhartha Khemka, head of research, Wealth Management, Motilal Oswal Financial Services.
“Bulls took control towards the end of the day and lifted the indices to a fresh high, reflecting the global uptrend. Optimism over rate cuts across the world (ECB and US Federal Reserve) has provided a positive impetus to the global market,” added Vinod Nair, Head of Research at Geojit Financial Services.
Most Asian markets rose, lifted by a rally driven by technology stocks on Wall Street. The S&P 500 had posted gains of more than 1 percent on Wednesday, led by a rally in technology stocks.
Reports that China could cut rates by 50 basis points on $5 trillion in mortgages as early as this month to boost consumption also boosted sentiment. European stocks also opened higher ahead of the European Central Bank’s latest monetary policy decision. The central bank was expected to cut rates again by 25 basis points later on Thursday. The pan-European Stoxx 600 index rose more than 1 percent in the first half of the session.
In India, metal stocks were the biggest gainers, with the Nifty Metal Index up 2.9 percent on hopes that an interest rate cut in China would boost consumption.
The auto index also registered gains of over 2 per cent. All sectoral indices closed in the green. Hindalco Industries, Bharti Airtel, NTPC and Shriram Finance were among the top gainers in Nifty 50 and Sensex. Expiry of derivatives contracts also supported gains as it led to short-covering, experts said.
Large-cap benchmarks outperformed the broader market indices. The Nifty Midcap 100 index closed with gains of 1.2%, while the Nifty Smallcap 100 index rose 1%.
The market fear gauge, India VIX, fell 3.3 percent to 13.8.
The combined market capitalisation of BSE-listed companies rose by ₹6.6 trillion to hit a new high of ₹467.4 trillion ($5.6 trillion).
First published: September 12, 2024 | 20:28 IS
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