Sensex surges to lifetime high, Nifty nears 9,700 on positive global cues

The S&P BSE Midcap and the S&P BSE Smallcap indices gained 0.3% and 0.5%, respectively

The benchmark S&P BSE Sensex extended gains in late morning deals to hit its lifetime high tracking positive trend seen in Asian markets after oil prices climbed off their 10-month lows, while investors also took cues from the minutes of Reserve Bank of India (RBI)'s June policy meeting. 

The 30-share Sensex rallied as much as 215 to hit its all-time high of 31499.29, while the 50-share Nifty rose 55 points to 9689.45, 19 points away from its lifetime high of 9,709, hit on June 6.  

At 11:05 am, the S&P BSE Sensex was trading at 31,482, up 199 points, while the broader Nifty50 was ruling at 9,684, up 51 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices gained 0.6% and 0.7%, respectively.  

"Going forward, we may see continuation of the bounce first towards 9,665 and then to test the 9,700 mark. On the flip side, 9,608 has now become an important support level on an intraday basis," said Angel Broking in a technical note. 

Buzzing stocks

Federal Bank gained 2% to Rs 119 after the South-based bank on Wednesday launched an institutional sale of shares, aiming to raise around Rs 2,000 crore or $310 million in capital. 

Shares of ailing steel and auto ancillary companies Bhushan Steel, Monnet Ispat & Energy and Amtek Auto have rallied by up to 10%, extending their two-session long rally on BSE on the back of heavy volumes.

Hindustan Unilever was the top loser on Sensex after its shares turned ex-dividend on Thursday for final dividend of Rs 10 per share for the year ended March 31, 2017. The stock shed nearly 25 to Rs 1105. 

Sebi tightens rules for offshore derivatives

In a key decision, the market regulator Sebi banned participatory notes (p-notes) from taking naked positions in the derivatives segment, and eased the entry process for foreign portfolio investors (FPIs). It also removed the one-year lock-in requirement for private equity investors registered as alternative investment funds (AIFs) in initial public offerings (IPOs). CLICK HERE FOR FULL REPORT

RBI minutes

The RBI's monetary policy committee wants more evidence that inflation has sustainably fallen below its target before deciding whether to lower interest rates, minutes from its last meeting showed on Wednesday.

The RBI voted 5-1 to keep the repo rate at 6.25% earlier this month, but issued a slightly less hawkish statement after consumer inflation eased to 2.99% in April, below its 4% target.

Ravindra H Dholakia, a professor who is one of three non-RBI members, was the lone dissenter, voting to lower the repo rate by 50 basis points by strongly arguing that inflation had eased enough to justify a rate cut. CLICK HERE FOR FULL REPORT 

Oil prices climb off 10-month lows 

Oil prices rose on Thursday after US crude and gasoline stockpiles fell, but worries over whether OPEC-led output cuts would be able to rein in a three-year glut continued to drag.

The market largely shrugged off comments overnight from Iran's oil minister that members of the Organization of Petroleum Exporting Countries (OPEC) are considering deeper cuts in production.

Brent crude futures were 4 cents higher at $44.86 a barrel, after falling 2.6% in the previous session to their lowest since August last year.

US crude futures were up 6 cents at $42.59 a barrel. On Wednesday, they settled down at $42.53, after touching their lowest intraday level since August 2016.

Global markets

Asian stocks advanced on Thursday. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2%. 

Japan's Nikkei and South Korea's KOSPI were flat, while Australian shares rose 0.4%. China's Shanghai Composite and Hong Kong's Hang Seng was also up 0.5% and 0.4%, respectively. 

On Wall Street, the Dow Jones Industrial Average closed down 0.3%, while the S&P 500 was slightly lower. Nasdaq closed up 0.7%, lifted by biotech stocks.

(With inputs from Reuters)