FII inflows; derivatives expiry lift equity indices

Fresh inflows of foreign funds along with March derivatives expiry pushed the key Indian equity market indices higher by around 1 per cent each on Thursday.

Consequently, the S&P BSE Sensex closed 412.84 points higher at 1.08 per cent to 38,545.72 points, while the NSE Nifty50 jumped to 124.95 point or 1.09 per cent at 11,570 points.

Accordingly, the gains were led by the banking and IT stocks, with the Bank Nifty touching fresh high level.

"Markets witnessed a hefty rally on Thursday, as it resumed its uptrend after the sell-off seen in the early morning and late afternoon session. It was also the derivative expiry day of the March series," said Deepak Jasani, Head of Retail Research at HDFC Securities.

According to Vinod Nair, Head of Research, Geojit Financial Services: "Benchmark indices outperformed the broader indices in the expiry day supported by banks and IT. Bank Nifty propelled to a new high in expectation of rate cut from RBI next week and recapitalisation of banks."

"Besides, the slid in India's 10-yr bond yield further raised the possibility of rate cut. Global economic growth concerns and Feds dovish view on rates will give a positive impetus to emerging markets like India."

The top gainers on Sensex were HCL Tech, State Bank of India (SBI), Yes Bank, Axis Bank and Sun Pharma which surge in the range of 3 to 2 per cent.

The losers in the Sensex pack were ONGC, Bajaj Auto, PowerGrid, NTPC and Mahindra and Mahindra declined up to 1 to 0.70 per cent.

--IANS

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