If Nifty holds today’s lows, Nifty may cross 8,050
We had mentioned in Wednesday’s closing report that if Nifty holds Wednesday’s lows, it may rally till 7,970. The market recovered from the crash earlier this week and there were healthy gains. The market is likely to shake off its fears if there are no negative international cues. Indeed, the US seems to have logged in strong economic growth in the June quarter which sent the US markets higher at the opening on Thursday.
Rebound in rupee value, stronger Chinese markets and global sentiments on deferment of a rate hike in the US on Thursday ushered in a major recovery in the Indian and global equity markets today.
The recovery propelled the barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) to gain 517 points or 2.01% in the day's trade. The CNX Nifty of the NSE rose 157.10 points or 2.02% at 7,948.95 points.
The S&P BSE Sensex which opened at 26,137.03 points, closed at 26,231.19 points. It touched a high of 26,302.77 points and a low of 25,943.75 points in the intra-day trade.
Analysts said the markets remained in the positive zone on Thursday due to improved global conditions and speculation that US Fed may keep rates unchanged.
The rupee gained by 9 paise and closed at 66.05 to a US dollar from Wednesday's close of 66.14. It touched a day's low of 66.85.
The Chinese benchmark Shanghai Composite Index closed with gains of 5.40%. On Wednesday the index lost 1.30%. On the other hand, markets were also buoyed by speculations that the US Fed might not go ahead with the decision to hike key lending rates after a decade of ease money regime.
High interest rates in the US are expected to lead away the foreign portfolio investors (FPIs) from emerging markets like India.
Analysts added that the markets rally was also supported by short-covering or value buying on the expiry day of August derivative contracts.
Sector-wise, all the 12 BSE sub-indices of the BSE closed in the green.
The S & P BSE consumer durables index zoomed by 542.24 points, the healthcare index rocketed by 504.12 points, banking index gained by 354.62 points, the oil and gas index rose by 241.36 points and the metals index increased by 182.67 points.
Major Sensex gainers in Thursday's trade were: HDFC, up 8.41% at Rs.1,195.20; Vedanta, up 6.55% at Rs.91.15; Tata Steel, up 4.80% at Rs.225.85; Lupin, up 4.79% at Rs.1,898.50; and Cipla, up 3.95% at Rs.661.15.
The major Sensex losers were: BHEL, down 3.54% at Rs.231.70; Bajaj Auto, down 2.44% at Rs.2,189.30; Tata Motors, down 0.62% at Rs.334.70; NTPC, down 0.50% at Rs.119.15; and Hero MotoCorp, down 0.47% at Rs.2,380.70.
Among the Asian markets, Japan's Nikkei gained by 1.08%. Hong Kong's Hang Seng rose by 3.60%.
In Europe, London's FTSE 100 index swelled by 2.22%, French CAC 40 surged by 2.63% and Germany's DAX Index climbed by 2.63% at close of trading here.
The top gainers and top losers of major indices are given in the table below:
The closing values of major Asian indices are given in the table below: