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After hitting new record highs, Indian equity indices closed flat in a volatile market on Thursday, weighed down by Mahindra & Mahindra, Reliance Industries and private banking stocks. However, the blue-chips extended their rally to record highs for a second session in a row.

The 30-share BSE benchmark Sensex surged 33 points or 0.05% to settle at 74,119. The broader NSE Nifty gained 19 points or 0.09% to end at 22,493.

Tata Steel, Tata Motors, JSW Steel, and Bajaj Finserv were the top Sensex gainers, risieng 2-4%. Bajaj Finance, Asian Paints, ITC, Nestle India and TCs also closed higher, while M&M, Reliance Industries, Axis Bank, and ICICI Bank closed lower.

M&M shares fell 3.7% amid news of a 0.8% equity block deal in which the promoters are likely to have sold a partial stake. The conglomerate’s promoter group entity Prudential Management and Services (PMSL) was looking to sell a stake in the company.

Suzlon Energy shares closed in a 5% upper circuit after the company bagged a 72.5 MW wind power project from Juniper Green Energy.

On the sectoral front, Nifty Media rose 2.5%, led by DB Corp, Zee Entertainment Enterprises, and Network18. Nifty FMCG, IT, Pharma, PSU Bank, and Consumer Durables also surged, while Nifty Private Bank, Realty, and Oil & Gas declined.The market breadth was skewed in the favour of the bulls. About 2,111 stocks gained, 1,692 declined, and 119 remained unchanged on the BSE.

Expert Views

“Equity benchmark indices edged higher after hitting a record high amid a firm trend in the US market and FII inflows. Moreover, faster- than-expected economic growth for the current fiscal year boosted sentiments for metal and capital goods stocks. Further clarity on the labour market, anticipated with the release of non-farm payroll data on Friday, will offer insights into potential rate adjustments,” said Vinod Nair, Head of Research, Geojit Financial Services.

Rupak De of LKP Securities, said, “The Nifty stayed below the psychological 22,500 mark, with call writers at the 22,500 strikes significantly increasing their positions. On the downside, support is expected to hold at 22,400. The buy-on-dips strategy is likely to persist as long as it remains above 22,400. On the upside, a decisive move above 22,500 could trigger buying interest in the market, potentially pushing the index towards 22,700 in the short term.”

Global Markets

Europe was waiting for the European Central Bank to lay out its latest interest rate cut plans on Thursday after the Federal Reserve had hinted at its first cut in years again and the Bank of Japan had set the Yen on another tear higher.

Chinese bluechips fell 0.4%, weighed by a 3.3% plunge in the healthcare sector on the news that a US bill targeting Chinese biotech companies like BGI and WuXi AppTec was moving ahead. The sharp rally in the Yen had also seen the Nikkei slide back 1.4% after it had hit a fresh all-time high earlier in the session.

Oil Prices Slip

Oil prices slipped on Thursday as expectations that US interest rate cuts could be delayed capped gains, though upbeat Chinese trade data augured well for demand in the world’s top oil importer.

Brent crude futures slipped 42 cents or 0.5% to $82.54 a barrel, while US West Texas Intermediate crude futures inched down 36 cents or 0.4% to $78.77 a barrel.

Rupee Ends Slightly Higher

The Indian rupee ended marginally stronger on Thursday after hitting its highest level in six months earlier in the session, as likely intervention from the central bank limited the currency’s rise.

The rupee closed at 82.7850 against the U.S. dollar, higher by 0.05% compared with its close at 82.8225 in the previous session. The local unit rose 0.1% in the week, logging its fourth consecutive weekly gain.

(With inputs from agencies)

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